• Riksbank extends QE, but the Board is divided • The Riksbank kept its policy rate unchanged and extended the duration of QE by 6 months. • Importantly, 3/6 Board members dissented the decision to extend QE (but it passed as the Governor holds the decisive vote in the event of equal votes). • This suggests that the bar for any further easing is high. SEK strengthened. • Given these signals that further easing is unlikely, SEK could remain under buying interest. • Today: • Sweden: Retail sales for Nov. are exp. to have slowed. • US: Personal income & spending for Nov. Income is exp. to slow, spending to accelerate a bit. We see downside risks to both forecasts. Also, durable goods orders for Nov. and final estimate of Q3 GDP. We exp. most of the attention to be on income and spending. In case of negative surprises, USD could give back some of its gains, at least temporarily. • Canada: CPI for Nov. Headline rate exp. to decline, core to rise. Focus may be on a rise in the core rate and as such, this may prove CAD-positive.
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Main points for Today
• Riksbank extends QE, but the Board is divided
• The Riksbank kept its policy rate unchanged and extended the duration of QE by 6 months.
• Importantly, 3/6 Board members dissented the decision to extend QE (but it passed as the Governor holds the decisive vote in the event of equal votes).
• This suggests that the bar for any further easing is high. SEK strengthened.
• Given these signals that further easing is unlikely, SEK could remain under buying interest.
• Today:
• Sweden: Retail sales for Nov. are exp. to have slowed.
• US: Personal income & spending for Nov. Income is exp. to slow, spending to accelerate a bit. We see downside risks to both forecasts. Also, durable goods orders for Nov. and final estimate of Q3 GDP. We exp. most of the attention to be on income and spending. In case of negative surprises, USD could give back some of its gains, at least temporarily.
• Canada: CPI for Nov. Headline rate exp. to decline, core to rise. Focus may be on a rise in the core rate and as such, this may prove CAD-positive.
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To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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