SEK marches higher as Riksbank recommit to....>

FOREX: SEK marches higher as Riksbank recommit to tightening

-Sweden's Riksbank rowed back on market expectations of unchanged rates (and

even a decent chance of policy easing) across the forecast horizon by

recommitting to tightening this morning. Although the projected rate path is

slightly flatter than previously, today's decision showed the Riksbank are far

from throwing in the towel to reverse course on policy. MNI estimates show the

bank's implied policy path sees a 10% chance of a hike in October, 70% in

January next year and 100% in February. EUR/SEK now eyeing support at the 50-

and 100-dmas at 10.6508 and 10.6571.

-Haven FX is on the back foot for a second session, pressing CHF and JPY to the

bottom of the pile, as equity markets continue to improve. Confirmation that

China and the US are to hold trade talks in October has underpinned sentiment,

helping US equity futures climb to the best levels since early August.

-US ADP Employment Change, weekly US jobless claims and ISM non-manufacturing

data are the calendar highlights. ECB's de Guindos is due to speak as well as

BoE's Tenreyro.