Riksbank pushes out hike forecasts - As.......>

FOREX: Riksbank pushes out hike forecasts

- As expected the Riksbank left policy on hold at 0.50% and in the accompanying

statement pushed back its rate hike forecast to 'in Dec, or Feb'. Dovish

undertones were also noted, 'considerable uncertainty regarding international

developments' and 'risks of excessively low inflation merit particular

attention'. EURSEK spiked on release to Sek10.6087, before fading.

- In a similar move to yesterday the dollar firmed at the European crossover,

but failed to build on gains. The DXY currently flirts with the 50-dma at 95.05,

US10y clings on to the 2.90% level, while gold moves back above $1200.

- AUD was the main underperformer overnight following ANZ & CBA lifting their

variable mortgage rates. The stronger USD theme pressured AUDUSD to 0.7166,

before staging a minor recovery.

- Soft German Factory Orders pressured EURUSD to 1.1614, but as USD longs

unwound, later settled $1.1633/38.

- GBP comfortably holds above $1.2900, targeting yesterday's $1.2983 spike high.

EURGBP trades either side of Gbp0.9000, maintaining its bullish outlook.