• The Swedish Krona strengthened further vs. EUR, and USD.
• The Riksbank reduced its policy rate by 25 bps, as anticipated.
• The Riksbank left the door open to further interest rate cuts.

The Swedish Krona (SEK) gathers extra pace and drags EUR/SEK to new multi-week lows near 11.3600 on Tuesday.

The Riksbank said more rate cuts are coming

In fact, EUR/SEK drops for the third day in a row, breaking the key 200-day SMA, after the Riksbank trimmed its policy rate by 25 bps to 3.50% at its meeting earlier on Tuesday, matching the broad consensus.

The bank also suggested that it might accelerate policy easing if price pressures do not intensify. Indeed, the Riksbank noted that if the inflation outlook remains unchanged, the policy rate could be reduced two or three more times this year, which would be somewhat faster than the Executive Board's assessment in June.