SEK Outperforms, raises inflation forecasts...>

FOREX: SEK Outperforms, raises inflation forecasts

- The Riksbank left policy unchanged as expected, hawkish remarks lifted SEK

after it said the Krona exchange rate has developed more weakly than expected

and together with more rapid energy price increases, this will contribute to

higher inflation in the year ahead compared with the previous assessment. EURSEK

touched react lows of Sek10.3500, continued strength throughout the session

extended to Sek10.2773.

- GBP underpinned from BoE Saunders remarks that said rates may need to rise

faster than mkt expects, briefly reclaimed $1.32 before GBPJPY sales eased.

- EURUSD benefited from a resolution to the migrant issue to print highs of

$1.1673, before JPY strength prevailed via the crosses to pare light gains.

- The broadly weaker USD theme which saw gold improve $19 on the session was a

welcome relief for commodity space FX. AUDUSD lifted to $0.7404, NZDUSD extended

its recovery off yesterday's multi year low to $0.6758. Oil slipped from

multi-year highs of $75/bbl to re-test $73/bbl after Al Jazeera reported the

Saudi's had agreed to President Trump's demand to pump more oil.