Riksbank is concerned about inflation developments in Sweden. The May inflation data is due for publication today. If the print surprise to the upside, the Swedish krona could retrace its losses of the past days a little further, economists at Commerzbank report.

Inflation likely to cause further headaches for Riksbank

“If the inflation data were to surprise on the upside today the likelihood of more Riksbank action increases and krona could retrace its losses of the past days a little further. However, principally we do not see much more appreciation potential as a more restrictive Riksbank is likely to be largely priced in.”

“We expect the ECB to follow suit in July so that over the coming months EUR-SEK is likely to trend sideways around 10.40.”