The EUR/SEK currency pair hovered above recent low of 10.7450, its weakest level since April 3rd 2025, ahead of French and German preliminary CPI inflation data for December, which will provide further clues over price pressure within the Euro Area’s largest economies.
Annual headline inflation in France probably remained stable at 0.9%, while inflation in Germany probably eased to 2%, according to market consensus.
Both reports are due tomorrow.
The ECB kept interest rates unchanged in December and signaled that they would likely remain steady for some time.
ECB President Christine Lagarde emphasized that forward guidance was limited due to uncertainty and the central bank would follow a data-driven, meeting-by-meeting approach.
Money markets are currently pricing a 25 bps ECB rate cut in February, with chances being below 10%. This suggests the ECB policy easing cycle may be nearing its end.
Meanwhile, SEK traders will be looking into Sweden’s Services PMI data for December due on Wednesday and preliminary CPI inflation report due on Thursday for fresh clues over Riksbank’s policy path.
The EUR/SEK currency pair was last down 0.07% on the day to trade at 10.7878.
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