Traders made advance arrangements for the Bank of Sweden's policy decision on Wednesday night, and the cost of hedging fluctuations in the euro against the Swedish krona rose to the level since May. The overnight volatility of EUR/SEK had previously reached 10.05%, then the increase narrowed. The currency's spot price was basically flat at 10.9576; it hit a three-month low of 10.9226 on Monday. The one-cycle risk reversal indicator was previously extended to 8 basis points, biasing bullish options for the krona, for the first time since April 2025. The market expects the Riksbank to raise the benchmark interest rate to 2%. This is the first time the bank has raised interest rates since 2023. The market is divided on whether officials will release hawkish statements after raising interest rates, and market fluctuations are expected to increase.

Traders made advance arrangements for the Bank of Sweden's policy decision on Wednesday night, and the cost of hedging fluctuations in the euro against the Swedish krona rose to the level since May. The overnight volatility of EUR/SEK had previously reached 10.05%, then the increase narrowed. The currency's spot price was basically flat at 10.9576; it hit a three-month low of 10.9226 on Monday. The one-cycle risk reversal indicator was previously extended to 8 basis points, biasing bullish options for the krona, for the first time since April 2025. The market expects the Riksbank to raise the benchmark interest rate to 2%. This is the first time the bank has raised interest rates since 2023. The market is divided on whether officials will release hawkish statements after raising interest rates, and market fluctuations are expected to increase.