Consumer inflation data from Sweden released yesterday showed an increase of 0.30% for the month of February, above the forecasted 0.20%, while inflation measured over the year increased by 0.40%, beating forecasts of 0.30%. On core inflation, Sweden's CPIF increased 1.50% year over year and 0.20% on a month over month basis edging closer to the Riksbank's projected inflation target. However, the central bank is likely to continue with its bond purchase program into the second half of the year in order to put a lid on the SEK's appreciation against the Euro. Clothing and footwear prices were the biggest contributors adding 0.30% points to the CPI on a month over month basis.
Dollar Under Pressure as FOMC Looms
Daily Analysis - 16/03/2016