October 04, 2023 14:38 GMT
SEK Gives Back Gains
SEK has given back all gains made from the Riksbank news earlier, after US factory orders came in strong and the prices component of ISM services remained stable, well above the 50-handle.
- The Riksbank earlier released a letter to the DMO, requesting a pause in the Government's phasing out of debt currency exposure.
- The Riksbank's FX hedging programme involves buying SEK, while the Government's actions would involve selling SEK. The news helped the SEK outperform the G10 for a short while.
- However, at typing EURSEK and USDSEK are now up ~0.4% and ~0.2% today.
- EURSEK hovers around 11.6496 - the trendline drawn from the November 11 2022 low, which provided resistance for the pair yesterday.
- The September budget balance and house price data on Friday provides the remaining items on the local calendar this week, before September CPI is released next Friday.