Accelerating Inflation Reduces Chances of Rate Cut, Makes Krona Stronger

The Swedish krona rose today as consumer inflation accelerated last month, reducing incentive for the central bank to cut interest rates that are already quite low.
Statistic Sweden reported that the Consumer Price Index advanced 0.1 percent in July after falling at the same rate in June. Economists did not expect any changes. Without any major news, the Forex market does not show a general trend, making currencies react to local news, while during the previous week many currencies were driven by overseas events, not domestic fundamentals.
USD/SEK retreated from 6.5298 to 6.5169 as of 10:44 GMT today.

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