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Is the Riksbank jumping in front of the ECB?- Pay attention EUR/USD traders

The Swedish Central Bank- The Riksbank has just lowered their benchmark rate to 3.75%, from 4%. Now before you get carried away and start looking at the EUR/SEK or the USD/SEK, this is not the bent of this update. Firstly, this outcome was expected by the majority of analysts and secondly it might have more relevance for the EUR/USD in due course. The fact that the Riksbank are looking at further cuts this year is quite interesting too, but only if inflation allows for such moves. So, quite often it is the Riksbank that jumps in front of the ECB and it might be exactly what is happening this time around and that will further fuel speculation; that the ECB will move to lower rates next month. The EUR/USD is largely unmoved on this decision, as to be expected, but this does highlight the outlook for the ECB to out-cut the Fed and move ahead of the US central Bank too. That folks is really why the EUR/USD has not made a sustained move above 1.08 over the past week, notwithstanding the weaker than expected US data. The EUR/USD is currently trading at 1.0742
 

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