Markets Calm Somewhat, SEK the G10 Winner

Markets Stabilize in Asia After Another Rout in Europe and the US

The dollar traded lower or unchanged against most of the other G10 currencies on Thursday. The main gainers were SEK, AUD and NZD in that order, while the only currencies that stayed on the back foot against their US counterpart were the safe havens JPY and CHF. The greenback traded virtually unchanged against GBP and NOK.

S&P 500 Cash — Technical Outlook

Yesterday it was another red day on the S&P 500, as the selling continued. Certainly, the selling was not as strong as on Wednesday, but nevertheless, the US stock market closed in the negative zone. Looking on the daily chart, the S&P 500 cash index dropped to the 2709 zone, but was quickly lifted back up by the bulls. This tells us that there is still some fight left on the buyer-side, which could potentially lead towards a small correction higher, before the bears could take control of the index again.

Krona Surges as Swedish Inflation Surprises to the Upside

The Swedish Krona was the main gainer among the G10 currencies yesterday, surging after Swedish inflation data showed that both the CPI and CPIF rates accelerated by more than anticipated in September. What’s more important though in our view, is that the core CPIF metric, which excludes the volatile items of energy, accelerated to +1.6% yoy, its highest pace this year.

EUR/SEK — Technical Outlook

Yesterday’s good inflation numbers from Sweden helped the Swedish krona to strengthen against the common currency, hence we saw a sharp slide in the EUR/SEK. Those bears that missed the drop yesterday could try and join in today, where we could see the pair continuing to sail south, at least for a while.

As for Today’s Events

During the European day, we get Germany’s final CPI for September and it is anticipated to confirm its preliminary estimate of +2.3% yoy. Eurozone’s industrial production is forecast to have risen 0.4% mom in August, after sliding 0.8% in July. However, this is likely to drive the yoy rate down to -0.3% from -0.1%.

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