SEK bounces as board splits further on rate...>

FOREX: SEK bounces as board splits further on rate path

-SEK is comfortably the top performer in G10 as the Riksbank board, while

keeping policy unchanged, became more divided over the course of monetary

policy. 2 members of the board eyed a quicker exit to negative interest rates

and raised their inflation forecast, helping lift SEK against all others.

-European equities are recovering, led by Germany's DAX, after the resolution to

the migrant spat that threatened Angela Merkel's position as chancellor. This

has dampened the USD and JPY and helped both EUR/USD and GBP/USD to sit just

below yesterday's highs.

-CNY and CNH fell further overnight, but sentiment was bolstered by a PBoC

statement, firmly reiterating that the bank will keep the currency stable at an

equilibrium level. MNI Beijing noted that PBOC rarely stress their stance on the

CNY in such a strong tone, indicating that the current plunge may be approaching

the outside of the PBOC's "reasonable range". This has helped AUD so far today.

-Early close in the US will see volumes and liquidity drained in the latter half

of the session, with little data due.