Global Markets React to Strong U.S. Jobs Data and Rising Yields 
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close 
Energy Sector Outlook 2025: AI's Role and Market Dynamics 
Trump’s "Shock and Awe" Agenda: Executive Orders from Day One 
2025 Market Outlook: Key January Events to Watch 
Bank of America Posts Strong Q4 2024 Results, Shares Rise 
BTC Flat at $89,300 Despite $1.02B ETF Exodus — Buy the Dip Toward $107K? 
JPMorgan Lifts Gold Price Forecast to $6,300 by End-2026 on Strong Central Bank and Investor Demand 
US Gas Market Poised for Supercycle: Bernstein Analysts 
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
Stay long SEK vs EUR (cash) and NZD (options) EURSEK continued its steady but nevertheless persistent decline this week as an extremely strong PPI print supported the sense that the inflation cycle in Sweden is gaining momentum. The relationship between PPI and CPI is rather loose but at 6.5% PPI is at its highest level in a decade and consistent with CPIF moving above 2%.
As we wrote last-week, the Riksbank forecast a slight decline in CPIF this year, so may soon be in the unusual position of having to respond to upside inflation surprise (a high-class problem, admittedly).
We remain long SEK, although with EURSEK having already retraced 60% of the Riksbank-inspired rally from 9.12 last April to 10.00 in December, the pace of gains are likely to slow, at least ahead of the next CPI print on February 17.
Stay short in EURSEK spot FX at reference 9.4237 with stop at 9.6637.
Add longs in 6m NZD put/SEK call, strike 6.3322 for 1.47%. Spot reference 6.3585.
