Continuum Economics
  • Search
  • About Us
  • Buy
  • Invite A Friend
  • My Basket
  • Articles
  • Calendar
  • Forecasts
  • Events
  • Data
  • Newsletters
  • My Alerts
  • Community
  • Directory
  • About Us
  • Buy
  • Invite A Friend
  • My Basket
  • Articles
    • All
    • Thematic
    • Tactical
    • Asia
    • EMEA
    • Americas
    • Newsletters
    • Freemium
    • Editor's Choice
    • Most Viewed
    • Most Shared
    • Most Liked
  • Calendar
    • Interactive
      • China
      • United States
      • Eurozone
      • United Kingdom
    • Month Ahead
    • Reviews
    • Previews
  • Forecasts
    • Forecasts
    • Key Views
  • Events
    • Media
    • Conference Calls
  • Data
    • Country Insights
    • Shadow Credit Ratings
    • Full CI Data Download
  • Newsletters
  • My Alerts
  • Community
    • FX
    • Fixed Income
    • Macro Strategy
    • Credit Markets
    • Equities
    • Commodities
    • Precious Metals
    • Renewables
  • Directory
  • My Account
  • Notifications Setup
  • Account Details
  • Recent Devices
  • Distribution Lists
  • Shared Free Trials
  • Saved Articles
  • Shared Alerts
  • My Posts
Published: 2024-03-08T07:34:18.000Z

EUR, SEK flows: EUR holds gains but upside limited. SEK unimpressed by stronger GDP

byAdrian Schmidt

Senior FX Strategist
-

EUR holding onto Thursday gains but little impact from German production data as downward revisions offset stronger January. SEK benefits slightly from better January GDP, but data tends to be unreliable

German industrial production was stronger than expected in January, rising 1.0% on the month, but the significance is minimal as the December data was revised down to -2.0% from -1.4%. The underlying trend remains weak. EUR/USD has held Thursday’s gains overnight, but we see upside as quite limited form here. Thursday’s gains came in spite of a decline in EUR front end yields after the ECB meeting, but spreads were already supportive of EUR gains after the decline in US yields following Powell’s comments on Wednesday. We still think Powell’s comments were less dovish than the market interpretation, and a solid employment report today may see US yields move back up and EUR/USD slip back towards 1.09.

We have had some strong January GDP numbers from Sweden, triggering some modest SEK gains, but markets will be wary of the reliability of these numbers, so upside is likely to be quite modest in the short term. January GDP is reported up 0.8% m/m, but the strength owes a lot to government spending and weak imports, so will not be taken too seriously at this stage. Yields spreads still suggests EUR/SEK stability close to 11.20.

Continue to read the article for free
Login

or

or

Topics
Foreign Exchange
FX DM
Flows
EUR/USD-Commentary
EUR/SEK-Commentary

GENERAL

  • Home
  • About Us
  • Our Team
  • Careers

LEGAL

  • Terms and Conditions
  • Privacy Policy
  • Compliance
  • GDPR

GET IN TOUCH

  • Contact Us
Continuum Economics
The Technical Analyst Awards Winner 2021
The Technical Analyst Awards Finalist 2020
image