We argue that Riksbank remains wrongly priced. Over the last week the Swedish fixed income market has priced out some of the Riksbank rate cut expectations for the next two meetings and market pricing in fact indicates a probability of a rate hike in autumn 2014, which we strongly disbelieve will happen.
Swedish PMI manufacturing is expected to rise in November, in line with Germany and NIER manufacturing index, implying that the divergence between Swedish soft and hard data will continue for yet another month.
This year's transfer of the Swedish pension money (PPM) will take place over the weekend of 7-8 December, with the first trading day being 9 December. We expect the amount to be close to last year's SEK33bn (somewhere between SEK33bn and SEK35bn). We find that since the beginning in 2001 the EUR/SEK has more often than not risen in the days before the PPM date and continue to target 9.00 as a 1M forecast in the EUR/SEK.
The big event in the Norwegian market is Norges Bank's interest rate decision and the new Monetary policy Report on 5th December. We expect the policy rate to remain at 1.5%.
However, the rate path is now expected to be revised downwards pushing back the next rate hike to the first half of 2015. Given the high correlation with relative rates a new 2013-high in EUR/NOK is expected this week. We continue to warn about the poor liquidity in the Norwegian currency market in December.
To Read the Entire Report Please Click on the pdf File Below.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Scandi Markets Ahead: Another Soft Norges Bank Monetary Policy Report
Published 12/02/2013, 06:44 AM
Updated 05/14/2017, 06:45 AM
Scandi Markets Ahead: Another Soft Norges Bank Monetary Policy Report
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.
Latest comments
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.