Outperforming G10 As Riksbank Minutes Deemed More Hawkish vs Policy Statement

SEK is outperforming the G10 this morning, with markets deeming the Riksbank's January minutes tilted a touch more hawkish relative to last week's policy statement. The modest strength comes in spite of equity markets trading on the backfoot through the morning.

• While the Executive Board acknowledged that there was a high chance of the policy rate being cut earlier than implied by the November MPR projections, upside risks to inflation from a weaker krona and elevated business pricing plans were once again highlighted.
• Additionally, even the more dovish members of the Board (Jansson and Flodén) pushed back on the idea of a rate cut as early as March.
• After falling around -0.8% yesterday, EURSEK is -0.1% lower today and trading below the 20-day EMA at 11.3065. The Jan 31 low of 11.2011 is the first support.