Free Trial

- The Riksbank rate decision and MPR is....>

RIKSBANK
RIKSBANK: - The Riksbank rate decision and MPR is due in 10 mins. They are
almost guaranteed to leave rates on hold with the big debate being over whether
they hike in Dec or Feb.
- In the last meeting there was one vote for an immediate hike, one dissent in
favour of keeping October hike in the guidance and one member who disagreed with
pushing back the hike guidance, but not enough to formally dissent. This leaves
two voters likely to vote for an Oct hike and one strongly in favour of Dec. We
have since had strong inflation and the balance of risks suggest either
unchanged or more hawkish guidance (see Friday's State of Play).
- The key thing to watch is the Q1-19 rate forecast (the ave rate for the
quarter). It was previously -0.33%. A move to -0.30% puts a Dec hike at around
75% probability and a move to 0.28% would signal a 90% probably. An increase in
the probability of a Dec hike would likely see EURSEK break below the 200-dma at
10.2784. The next major support would be the July lows at 10.2133.
- If rate forecasts are left unchanged a move up to the 100-dma at 10.3798
should contain the move higher unless there are other dovish changes.

To read the full story

Close

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.