On Thursday, the Riksbank disappointed with its decision. Ulrich Leuchtmann, Head of FX and Commodity Research at Commerzbank, analyzes the Riksbank policy outlook and its implications for the Swedish Krona (SEK).

Thedéen does not have the funds to intervene

Riksbank governor Erik Thedéen does not have the funds to intervene. And empty threats are not only unproductive, but counterproductive.

One can only recommend to the Riksbank to pursue a more attractive monetary policy from the FX market’s point of view if it wants to see a stronger Krona.