Strong GDP unlikely to support SEK

Sweden's GDP data for Q2 is scheduled to release today. In contrast to the US, Sweden has recently not had any problems with the real economy. 

The Swedish central bankers are concerned about inflation developments - as they have been for the past two years. That is how long the rate of inflation has been close to or sometimes even below zero.

A couple of months ago now Riksbank became hopeful that the inflation trend in Sweden was now at last rising, but since then the inflation rate has slipped back into negative territory again. 

As good as GDP growth in Q2 may turn out to be, unless it is soon reflected in inflation Riksbank's joy and thus its tolerance for a stronger krona will be limited, states Commerzbank.