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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
RIKSBANK
The Riksbank sold USD950mln and EUR80mln in the week of 2 - 6 Oct as part of its FX hedging programme. This brings the total hedged to USD1,340mln and EUR80mln (USD390mln and EUR0 (zero) was sold last week).
- The increase in the USD sales is far above the level that would have been expected if the Riksbank were smoothing purchases across weeks.
- To finish hedging USD8bln of reserves in 4-months, it implies an average of around USD540mln in sales per week (assuming no sales between Christmas and New Year) according to MNI calculations, so today's data is an upward surprise, and suggests the Riksbank will make hedging decisions on a week-to-week basis.
- We note that USDSEK strengthened markedly in the first week of October, implying the Riksbank may be hedging more when the krona weakens.
- USDSEK spiked 0.15% following the release (although there was initially confusion as to whether the data released were cumulative or covered just the past week) but has since pared those gains, while EURSEK has moved similarly after a 0.1% rise post-release.
- Link to release here: https://www.riksbank.se/en-gb/markets/the-gold-and-foreign-currency-reserve/currency-hedging--sales-of-dollars-and-euros/
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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