Anna 
On Monday, the Swedish krona demonstrated resilience against the euro, maintaining stability after Riksbank Governor Erik Thedeen dismissed the possibility of a rate cut in June. This announcement bolstered the currency, with the EUR/SEK exchange rate standing at 11.61, reflecting positively on the Swedish central bank’s decision to refrain from easing monetary policy despite lower-than-expected inflation figures in April.
Known for his cautious stance on monetary policy, Thedeen emphasized the risks associated with a weaker krona. His recent comments have reduced market expectations of a June rate cut to 30%, suggesting that the Riksbank’s previous rate adjustments are achieving the intended effect amid lower USD rates and improved risk sentiment. This has led to speculation that if the Riksbank continues to signal against a June rate cut, the krona could align more closely with the Norwegian krone, despite potential domestic economic challenges.
Meanwhile, the euro remains in a narrow trading range against the U.S. dollar. Contributing factors include a recovery in the dollar, influenced by weaker performances of the Australian dollar, New Zealand dollar, and Japanese yen, while the euro, Canadian dollar, and Norwegian krone have remained relatively stable.
The EUR/USD pair is not expected to experience significant movement today due to a light economic data calendar in both the eurozone and the United States. Additionally, a speech by European Central Bank President Christine Lagarde at an event honoring Janet Yellen is not anticipated to address monetary policy, likely contributing to the euro’s static trading pattern for the day.
