Riksbank stand pat, fuelling SEK rally -......>

FOREX: Riksbank stand pat, fuelling SEK rally

- SEK sits comfortably at the top of the G10 table following the Riksbank rate

decision, in which the bank declined to cut rates back into negative territory

despite the acute downside risks to the economy. EUR/SEK fell sharply, taking

out the April lows to sit well below the 50-dma and at levels not seen since

mid-March.

- Elsewhere, GBP trades well and looks to secure a fifth consecutive session of

gains against the USD. With the 50-dma topped, $1.2495 becomes near-term

resistance (61.8% retracement of the mid-April decline). Current gains should

currently be considered corrective, but the bullish case will firm with a rally

above $1.2529 (the Apr16 high).

- NZD is one of the weaker currencies following a particularly bearish note from

Westpac, who see the RBNZ trimming OCR further.

- US trade balance data for March and consumer confidence data for April takes

focus going forward as well as US earnings, with Merck, Pfizer, PepsiCo and

Alphabet all due.