Riksbank: Slightly dovish risks – TDS

Jacqui Douglas, Chief European Macro Strategist at TDS, suggests that the Riksbank is more likely to surprise on the dovish side than take a hawkish turn, although that seems to be the consensus view so market reaction may be limited.

Key Quotes

“We think the Riksbank will ultimately end QE after June, but may still keep the door open for now. We also see the risk that rate hikes are pushed further into the future.”

“This week’s Riksbank meeting isn’t expected to be a substantial market mover, with little need to make any big changes to the forecasts. We do think though that a dovish surprise is more likely than a hawkish one, although market reaction may be limited as that seems to be the way most on the street are leaning already. We do think though the risks lie toward a tactical squeeze higher in EURSEK toward 9.60.”