On Wednesday Citi suggested that "recent...>

EURO-SEK: On Wednesday Citi suggested that "recent Riksbank speakers' comments

(and a deafening silence on the sharp relief rally in the Krona) seem to have

firmed up the idea that the Riksbank will hike at the end of the year. Citi's

forecast is 25bps in December. This is earlier than both the current Riksbank

rate path and market pricing. Jansson's financial stability comment is a hawkish

tail risk, despite being low delta (for now). Inflation forecasts from the

Riksbank look low given the move in oil prices, leaving room for upside

surprises in the months ahead that may further solidify a December hike. We

believe short EURSEK is an optimal expression of SEK strength and a move towards

9.75 may be seen from here."