EUR/SEK likely to depreciate modestly

Despite softer-than-expected Sweden's Manufacturing PMI data, the SEK remained well-supported last week, which however continue to set Sweden apart relative to its European peers. For this week, market participants expect an uptick in Industrial and Services Production by 1.5% m/m and 0.6% m/m respectively. 

Moreover, data on real household consumption will also come in focus providing insights into the overall performance of the Swedish consumer, a modest rebound is expected on the month. 

"Sweden's economic outperformance is expected and modest EUR/SEK depreciation is forecasted in the coming quarters, as the inflation uptrend continues and the Riksbank becomes more comfortable with contemplating some SEK strength, this change in stance has already begun", says Barclays.