9.30 CET today Swedish Riksbank will announce monetary policy. A split committee will may vote in favour of continuing QE via bond purchases beyond the current 30/6 end date in a bid to weaken the SEK vs EUR and boost a moribund inflation rate. The hawks will argue against further intervention in particular after Riksbankens strong move in February to cut rates further into negative territory by slashing 15 bps.
Later in day ECB is unlikely to move rates at this meeting, opting to save their powder for summer / post summer turbulence. Instead Draghi will probably engage forward guidance (or as Mohammed el Erian calls it - "linguistic gymnastics") to keep the Euro weak which is not easy.
On a side note, continued dovish rhetoric from the ECB has knock-on effects on other smaller European but non-euro countries, clearly influencing the decision makings by their central banks such as the Riksbank in Sweden which is pressurized to act in kind to maintain relative weakness.
Interesting comment from Bob Janjuah today on currency wars: Bob Janjuah Blog - Currency Wars
Later in day ECB is unlikely to move rates at this meeting, opting to save their powder for summer / post summer turbulence. Instead Draghi will probably engage forward guidance (or as Mohammed el Erian calls it - "linguistic gymnastics") to keep the Euro weak which is not easy.
On a side note, continued dovish rhetoric from the ECB has knock-on effects on other smaller European but non-euro countries, clearly influencing the decision makings by their central banks such as the Riksbank in Sweden which is pressurized to act in kind to maintain relative weakness.
Interesting comment from Bob Janjuah today on currency wars: Bob Janjuah Blog - Currency Wars
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