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Sweden inflation expectations draw attention ahead of Riksbank decision

Origo 1-year inflation expectations have risen somewhat, while 5-year expectations are around or slightly above 2%, ahead of the Riksbank rate decision on Thursday.

Reported · Written up by our desk · Central Banks

Sweden’s inflation expectations are in focus ahead of the Riksbank rate decision on Thursday, with Origo set to publish its data. According to Action Forex, 1-year expectations have risen somewhat but remain low, while 5-year expectations have been around or slightly above 2%.

Ahead of the Riksbank, the week’s macro calendar also includes UK July inflation and the FOMC minutes on Wednesday, as well as ECB minutes on Thursday. Action Forex noted euro area PMIs later in the week could be particularly important after a strong July print.

In other market-moving developments, Brent crude traded above USD 88 per barrel early Monday as Middle East tensions kept supply risks in focus, with Israel striking Lebanon over the weekend. Action Forex also pointed to the interim US-Iran ceasefire expiring and preparations for new US sanctions on Iran.

On the growth outlook, Action Forex said Japan’s preliminary Q2 GDP growth was weaker than expected at 0.3% quarter over quarter, while US data showed July retail sales came in weak and the University of Michigan consumer sentiment index fell in August. The outlet linked the retail weakness to factors including lower gasoline prices and weakness in online shopping and car sales.

Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%|Gasoline (RBOB) $2.901 ▼7.3%

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