Tomorrow Swedish central bank likely to increase rates by 25 bps to 3.75%
MarketsFN Team
The Riksbank probably would hike rates tomorrow as its mission is that money retains its value, thus no large surprise that a Reuters poll suggests a rate hike by 25 bps. The Central bank decision will be communicated at 9 GMT. Will follow a a press conference on the monetary policy decision with Governor Erik Thedéen and Mattias Erlandsson, Acting Head of the Monetary Policy Department.
In the April Monetary Policy Report the 25bps was announced by the Riksbank as very likely either in June or September. Recent data suggesting it will happen tomorrow.
USD/SEK in the first half of June reached its 2023 high when found resistance on the 61.8 % Fibonacci resistance of the bearish wave September – December 2022. The pair made a double bottom in May before to rally. Bullish sentiment likely above 11 while a SEK rally if the rate will fall below 10.55. At time of writing USD/SEK is trading at 10.74.
