Dampened market sentiment is once again putting pressure on the Swedish krona. Economists at Commerzbank expect today’s inflation to provide little positive momentum for SEK.

Covid concerns in China and global recession fears weigh on SEK

“It is possible that the data might cause rattled market participants to come to their senses again and illustrate to them that the Riksbank might raise its rate path significantly again at the end of June. In particular, if inflation was to come in even higher than expected.” 

“As long as the concerns about China and global growth dominate, high inflation is only likely to contribute to the upmove in EUR/SEK coming to a stop for now. Much more seems unlikely for SEK short-term.”