RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Bank of England Expected to Hold Interest Rates at 3.75% as Inflation Remains Elevated 
Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
Bank of Canada Holds Interest Rate at 2.25% Amid Trade and Global Uncertainty 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
 and NZD via vanilla put - EconoTimes)
Growth and inflation data remain at odds in Sweden. Growth has been running at 4% annualized pace for the last two-quarters and the manufacturing PMI is the highest globally at a heady 65.2 (services at 61.3), yet the primary preoccupation of the Riksbank—inflation—has disappointed yet again.
The latest release on April 11th missed both consensus and Riksbank expectations resulting in SEK underperformance since then, but a few of the economists perceive that the miss will partly be reversed in April due to the pattern of airfares.
Riksbank will be the main event next week in which they should retain the easing bias given the miss in inflation which could be disappointing for SEK bulls.
In addition, an outcome for the French elections in line with our base case could result in modest EUR strength. To cushion against these moves we recommend raising the stop-out level on EURSEK by 0.55. Short NZDSEK through a put has underperformed substantially.
With a month left to expiry, we look for opportunities to unwind this trade.
Sold EURSEK at 9.4847 on January 13. Marked at -1.68%.
Long a NZD put/SEK call, strike 6.10, expiry May 23. Paid 1.47%, marked at 0.22%.
