The SEK remains the G10 outperformer, defying weakness seen elsewhere amid broad USD strength.

• As mentioned earlier, drivers for the SEK strength are the SBB cash injection from the weekend and the beginning of Riksbank FX hedging today.
• FX hedging is not expected to directly support the SEK given the low transaction sizes, but adds credibility to the Riksbank's view that the currency is undervalued and should appreciate.
• EURSEK trades ~1.2% lower on the day and sits just above the 100-day EMA (at 11.6905), which may provide some support.
• A breach of the 100-day EMA will open up 11.6206 - a trendline drawn from the 11 Nov 2022 low.
• NOKSEK similarly is ~1.1% lower on the day, and sits just above the 100-day EMA at 1.0221, with the 200-day EMA the next support at 1.0197.
• USDSEK is up ~0.6% on the day.