Sek Strengthens Despite

Fundamental Analysis EUR Euro Area officials are going to Washington this week in order to demand larger war chest from overseas partners to prevent debt crisis as Spanish government struggles with surging borrowing costs. US though insists Europe can tackle crisis by its own financial firewall while Euro Zone representatives claim they already have done enough and deserve global help. USD Temasek Holdings is preparing to buy a part of Goldman Sachs Group's stake of Industrial & Commercial Bank of China (ICBC). Goldman Sachs is going to sell 3.55 billion of ICBC shares valued at USD 2.5 billion or about 4% of total amount traded in Hong Kong. ICBC shares lost 0.8% in Hong Kong on the news. Temasek has been raising holdings in China Construction Bank and Bank of China. GBP UK managed ...

The SEK was up after the Riksbank lowered interest rates to 1.75% from 2.00%. There are two explanations for this counterintuitive move in the SEK. Firstly, the Swedish central bank delivered on the expected 25 bp of monetary policy easing while refraining from a larger policy change. Secondly, risk sentiment improved following a strong Ifo survey and a successful Spanish bond auction. Economic News SEK - SEK Strengthens Despite Interest Rate Cut The SEK was up after the Riksbank lowered interest rates to 1.75% from 2.00%. There are two explanations for this counterintuitive move in the SEK. Firstly, the Swedish central bank delivered on the expected 25 bp of monetary policy easing while refraining from a larger policy change. Secondly, risk sentiment improved following a strong Ifo ...

There is a plethora of data coming up today including US Durable Goods Orders and New Home Sales, plus rate decisions from Norway and New Zealand. The Norges Bank rate announcement will likely see Norway follow Australia as the second G10 economy (and first in Europe) to begin tightening monetary policy since the onset of the financial crisis, with markets expecting a move of 25bps to 1.50%. The RNBZ should also prove to be a hawkish affair, as data in the past month has provided compelling arguments for policymakers to drop their dovish bias; latest Retail Sales figures for Aug were 1.1% MoM (vs. 0.5% expected), Q3 Consumer Prices rose 1.3% QoQ (0.8% expected), and September Business PMI figures revealed the first expansion in 18 months (51.7 vs. 48.8 in Aug). Yet despite these positive ...