In Sweden, the Riksbank held monetary policy by leaving interest rates unchanged at the current -0.35%, in line with analysts’ expectations. Analysts believe that many of the Euro area central banks are likely to take into consideration that there is more easing ahead from the European Central Bank as a reason to maintain their own policies. A week ago, the ECB said that they would expand the current QE program soon in an attempt to grow the EU economy. If the Euro depreciates further that would weigh heavily on the Swedish crown and threaten Sweden’s own flailing economy; Sweden relies heavily on the Eurozone for export trade.

As reported at 9:57 am (GMT) in London, the EUR/SEK pair was trading at 9.3590 Swedish Crowns, down 0.35%. In today’s trading, the pair ranged between 9.3465 and 9.4372 Swedish Crowns. The USD/SEK pair was lower at 8.4676 Swedish Crowns, a decline of 0.44%.

FX Traders Await Key Fed Decision

Market attention will focus squarely on the US Federal Reserve Bank. The Fed is due to release its monetary policy decision later today. Currently, analysts don’t expect to see any changes to the Fed’s benchmark lending rate. What will be critical will be the Fed’s signal as to timing of the next rate hike, so FX traders will be scrutinizing the statement for a clue. Some analysts believe that Janet Yellen, the Fed’s chairman, will want to keep her pledge of a 2015 rate hike in order to maintain credibility.