European Forex and Fixed Income Market Talk Roundup

By Anonymous

0927 GMT - The Swedish krona is so far this year’s worst-performing major currency, having fallen by a little more than 7% year-to-date against the euro. Global trade tensions sparked by U.S. protectionism brought to surface worries on how the krona would react if volumes of cross-border trade diminished, given that Sweden is a small open economy. And to hedge against such a scenario by buying the world’s most liquid currency--the dollar--has become expensive as the Federal Reserve continues to raise interest rates, pushing yields higher. Meanwhile, Swedish monetary policy and real interest rates “remain very punitive...