Bank of Japan Signals Cautious Path Toward Further Rate Hikes Amid Yen Weakness 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Bank of England Expected to Hold Interest Rates at 3.75% as Inflation Remains Elevated 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
RBA Raises Interest Rates by 25 Basis Points as Inflation Pressures Persist 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
Bank of Canada Holds Interest Rate at 2.25% Amid Trade and Global Uncertainty 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
 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%.
