Sweden FinMin Not Worried
The euro ground lower in the European session, though the newswires were fairly quiet and data releases thin. EURSEK continued its move lower and sits at the bottom of yesterday’s range. Finance Minister Anders Borg said it is too early to call Sweden a safe haven and it remains to be seen how a strong SEK will affect the export sector. For the krona bulls, there is limited sign of any verbal intervention, with Borg calling the trend in krona appreciation a normal market development. AUDUSD also outperformed overnight after the July employment numbers rose more than expectations (+14.0k vs +10.0k cons, -28.3k revised from -27.0k last), though the time series remains volatile and the split between full and part time workers was fairly even. The jobless rate fell to +5.2% vs +5.3% cons. Tier-1 data from China showed that industrial production slowed to 9.2% y/y (9.7% cons.), while retail sales also slowed to 13.1% y/y (13.5% cons.). Overall risk appetite was on a soft note with most European equity markets trading in the red at the time of writing. The BoJ meeting offered few developments, as the committee left, the APP unchanged, broadly in line with expectations. Jobless claims are due on the hour.
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