SEK flows: Firmer after stronger CPI

Swedish CPI was slightly stronger than expected at 1.7% y/y on the targeted CPIF measure, with the headline measure also above consensus at 2.6% y/y. EUR/SEK has dipped around 3 figures since the release, now sitting below 11.50. While yield spreads aren’t particularly supportive for the SEK, the SEK does tend to act a little like a super-EUR, benefiting against the EUR when the USD weakens and EUR/USD’s rise above 1.10 may consequently also be helping SEK sentiment. Still ,we don’t see  a strong case for SEK strength here, with the NOK in particular looking good value against it having underperformed through this year.