The investors held their breath during the Executive Board meeting on Monday, but not resulted in any further action. One hour after the meeting start initiated a strengthening of the krona against both the euro and the dollar.
The krona traded thus collectively clearly stronger against Friday’s levels, which showed the weakest quotation against the euro since the end of February.
“The disappointing inflation figures for the previous week increased the risk of a fall at today’s Board meeting. However, the circumstances are different today from in March, when the drop was triggered by a crown appreciation,” said DNB, which however predicts a lowering of the repo rate to -0.50 percent at the July meeting.
Several analysts had after weak inflation figures for April expected action during today’s meeting, including Danske Bank, which foresaw a reduction of 10 basis points. Although Nordea and BNP Paribas saw some chance for further action.
In addition, the currency market, the dollar bounced up against the euro after the previous week’s depreciation.
The Swedish bond yields with longer maturities have fallen marginally, while US counterparts show rising levels. The Greek bond yields have also risen sharply on renewed concerns about Greece’s financial situation.
The impasse in the negotiations between Greece and its lenders looks to continue to hold. The country has during the day stated that four uncompromising demands remains in talks with the international lenders. They consist of cuts in pensions, the growth plan, the target for the primary budget surplus and skuldomstruktureringen.
Meanwhile, Pierre Moscovici, EU economy commissioner, stated that new progress has been achieved in the talks, but they are not sufficient and that time is running out.
Furthermore, Greece’s banks run out of the necessary guarantees for financing and for its survival within three weeks, according to data from sources to Bloomberg.
“It seems to have been no real news regarding Greece, but investors are obviously very nervous and quick to act on each heading,” commented Kully Samra at Charles Schwab.
The US housing market index NAHB fell to 54 in May, against market expectations that low at 57 and last month’s unaudited results of the 56th
Statistics this morning showed that Swedish companies’ total stock volume rose by 2.7 percent in the first quarter of 2015 compared to the previous quarter while capacity utilization in Swedish industry decreased by 0.2 percentage points during the quarter to 88.9 percent.
Fed member Charles Evans said during a speech in Stockholm on Monday that inflation is too low and that should refrain from raising rates until there is greater confidence that inflation will reach two per cent target. Evans excluded while not raising can come back in June.
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