SEK has worst session of the year as..........>

FOREX: SEK has worst session of the year as inflation undershoots

-Sweden's SEK is the poorest performer in G10 Tuesday, as CPI inflation for

January fell well below expectations (dropping 1% on the month vs. expected drop

of 0.7%), prompting EUR/SEK to rally to the highest levels since early September

last year. While last year's highs are still some way off (Sek10.7291), a break

above here would be the highest EUR/SEK rate since 2009.

-The greenback is clawing back some of yesterday's lost ground after a thin and

quiet Monday, with the USD index edging back towards 97.00. Equity markets in

Europe are in retreat, with mainland indices lower by 0.4-0.5%. US equity

futures are following suit, indicating a lower open following the extended

weekend. GBP was little changed following largely in-line jobs market data, with

focus turning to the appearance of the PM's Attorney General in the Commons

later, looking to assuage concerns over the Irish backstop as part of the

proposed Brexit legislation.

-German ZEW survey and speeches from Fed's Mester and ECB's Costa and Praet are

the calendar highlights.