Sweden 2016 wage negotiations round in focus

The Riksbank wants to see is EUR/SEK staying at its current levels of 9.30, given the emphasis put on SEK in supporting the CPI recovery. A rise in import prices via SEK devaluation is likely the quickest and most direct route towards increasing CPI back to the Riksbank's target of 2%, given the limited timing, as the 2016 wage negotiations come into focus and the lag effect of monetary policy on general price levels.

"This asymmetry suggests greater upside risk for EUR/SEK and the EUR/SEK is forecasted at 9.60 by year-end 2015 and Q1 2016 before seeing a gradual grind lower", noted RBC capital markets.