📝 Riksbank Could Push Krona Higher On Interest Rate Hikes: Société Générale

The Swedish krona could rise as the Riksbank is likely to raise interest rates at its April 28 meeting. EUR/SEK should fall if the Riksbank lifts rates as the European Central Bank has signalled it could soon raise rates but is yet to do so and actions speak louder than words. However, a better longer-term trade would be short bets against GBP/SEK. The U.K. has been raising rates and more is likely, but is also priced in. GBP/SEK could fall to 11.00 over time, he says. GBP/SEK drops 0.3% to 12.3070 after hitting a two-and-a-half-week low of 12.2452 earlier. - SocGen FX Strategist