SEK flows: SEK slips on weaker CPI

Swedish CPI has come in weaker than expected at 2.3% y/y on the targeted CPIF basis, triggering some further gains in EUR/SEK, which had started to reverse its recent declines yesterday as the EUR rallied strongly after the tariff announcement. Recent declines in EUR/SEK still put it well below the levels associated with current yield spreads, suggesting scope for further gains, especially since the strength of the SEK in recent weeks has been associated with some optimism about the European economy and European equities which is evaporating after the US tariff announcement.