Analysts at Nordea Markets believe that, while the Riksbank's 2nd hike was not the formal start of a hiking cycle, it arguably felt, as one and the pattern suggested a bottom in EUR/SEK between 10.40 and 10.50 after the hike in December, and that the cross would bounce after the hike - as it has indeed started doing.

• "Now the pattern suggests a move to the 10.60-10.70 area. In related news, the Riksbank's krona-killing machine is still running (Riks' balance sheet expansion), SE growth expectations are still falling relative to the EA's, and the SE surprise index (CESISEK) is back in negative territory. Good times. Well, not for the SEK. Nordea's forecast for December's inflation figures is in line with the Riksbank's view, but weaker inflation in Norway could fuel some speculation of a disappointment also in Sweden."