Swedish inflation data surprised sharply to the upside.
Market was expecting July print to remain close to the level seen in June. However the far better than expected headline print, which now is very close to ending risk of deflation, as well as the core measures heading towards the inflation target, are seen as positive signs. In the wake of such developments, the Riksbank may decide to stay on hold during the next monetary policy meeting, as the measures - including strong asset purchase and negative interest rates - are proving to affect the prices level.
The inflation release was taken as a sign for sharp SEK appreciation. EURSEK was trading around 9,59 ahead of the publication and now is seen at 9,49. Against the USD the appreciaton is much lower, however still Swedish krona gains about 0,55%.