Geopolitical Shocks That Could Reshape Financial Markets in 2025 
China’s Growth Faces Structural Challenges Amid Doubts Over Data 
Malaysia Central Bank Moves to Support Ringgit Amid Foreign Fund Outflows 
China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery 
Mexico's Undervalued Equity Market Offers Long-Term Investment Potential 
European Stocks Rally on Chinese Growth and Mining Merger Speculation 
Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
Wall Street Analysts Weigh in on Latest NFP Data 
Central Banks Eye Gold, Reduce Dollar Exposure as AI Adoption Accelerates: OMFIF Survey 
New Zealand Unemployment and Inflation Debate Intensifies Ahead of 2026 Election 
UBS Projects Mixed Market Outlook for 2025 Amid Trump Policy Uncertainty 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
BOJ Hawk Signals Faster Interest Rate Hikes Amid Inflation Risks 
Moldova Criticizes Russia Amid Transdniestria Energy Crisis 
Lithium Market Poised for Recovery Amid Supply Cuts and Rising Demand 
Fed May Resume Rate Hikes: BofA Analysts Outline Key Scenarios 
The Swedish economy is recording robust growth and inflation is rising towards the inflation target. That would imply that the Riksbank is likely to end its expansionary monetary policy sooner than the ECB, in particular as its bond purchasing programme is set to run only until mid-2017.
Against this background, the krona already started appreciating at the end of last year. We have adjusted the EURSEK forecasts and expect slow krona appreciation from current levels.
The Riksbank is unlikely to tolerate an excessively rapid appreciation though and we, therefore, expect to see EURSEK at 9.30 by late 2017. The Riksbank has really not had reason to complain about economic developments over the past few years.
Despite strong growth, its main area of concern in 2014 and 2015 was stubborn deflation, which caused it to introduce a bond purchasing programme in February 2015, which was extended further and further until it amounted to SEK 245bn. by late 2016.
Hence we advocate following trades:
Stay short in EURSEK spot FX at reference 9.4343 with a stop at 9.6637.
On hedging grounds, add longs in 6m NZD put/SEK call, strike 6.3322 for 1.47%. Spot reference 6.3848.
