Diverging Fortunes For NOK and SEK

Today's pullback in European equities has weighed on the SEK, while the NOK remains supported as Brent futures have risen +0.7% today. Risk sentiment following today's US CPI release (1330GMT/1430CET) is likely to drive the Scandis intraday.

• Estoxx 50 futures have gained over 7% since Jan 17, and investors appear to be taking some profit ahead of US CPI.
• EURSEK has gained around half of yesterday's losses to trade +0.3% today at 11.2381. The Jan 31 low of 11.2011 remains the first support, while the 50-day EMA at 11.3142 is seen on the upside.
• NOKSEK has moved through the 100-day EMA at 0.9930 today, currently +0.3% at 0.9936. Parity / the 200-day EMA (at 1.0006) provide the first resistance.
• This week's regional data docket includes Norwegian Q4 GDP tomorrow (where mainland growth is expected to remain subdued) and Swedish unemployment on Friday.
• We hear from the Riksbank's Thedéen and Breman tomorrow, but expect a re-iteration of previous comments (as with Jansson today), given the lack of data between appearances.
• On Thursday, Norges Bank Governor Bache delivers her annual address. We don't expect too much guidance on the rate path: SEB note that "the address aims at highlighting long-term and structural economic policy challenges, and structural economic policy challenges rather than near-term policy hints".