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Riksbank’s QE under pressure today – Danske Bank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - Chief Analyst at Danske Bank Arne Rasmussen believes the Riksbank could increase the size of its QE programme at today’s meeting.

    Key Quotes

    “Mario Draghi’s clear indication that further easing measures are to be expected in December has raised the heat on the Riksbank”.

    “We doubt that the Riksbank can remain passive next year with the bond purchase programme set to continue only in EUR”.

    “An appreciation of the SEK remains a clear risk for the Riksbank’s inflation projection and it remains our view that should Governor Ingves provide no further guidance today, the Riksbank could risk sparking another round of SEK-appreciation”.

    “Consequently, we expect an extension of the current QE programme today of SEK45bn (i.e. the same size as the previous extension) to send EUR/SEK higher but we think the effect will be temporary and we still forecast the cross at 9.40 in 1M and 3M”.
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