Inflation did not fall as much as expected and remains stubbornly high at 6.4%. More worrying, however, is the development of the core rate, which weakened only marginally to 8.1 percent, above the Riksbank's expectations (7.84 percent).

The Riksbank's monetary policy is still not restrictive enough in the face of such high inflation data.

I would not be surprised if the Krona loses further ground in the coming days, without returning to the very weak levels that the EUR/SEK saw at the beginning of the month, when it traded above 11.90.