The euro / Swedish krona (EUR / SEK) currency pair traded near nearly two-week highs on Tuesday after the Riksbank hinted last week that interest rates could be cut earlier than previously expected.。

Riksbank holds key policy rate at 4 at February meeting.0%, in line with market expectations。

Riksbank reiterates past rate hikes have eased fears of high inflation。The central bank's administrative committee says they see less risk of inflation falling into dangerous levels。

In addition, the Riksbank also hinted that the rate cut may be earlier than previously expected, and may even be implemented in the first half of this year。

Capital Economics said in a client note: "We do not completely rule out the possibility of a first rate cut in March..But we think May is still more likely。Capital Economics expects a 100 basis point cut by the end of 2024, bringing rates down to 3..0% and further reduced to 2 by the end of 2025.5%。

Meanwhile, in terms of macro data, euro traders will focus on the Eurozone retail sales report for December, due out today at 10: 00 (GMT).。

The EUR / SEK currency pair edged up 0 as of Tuesday (8: 44 GMT).13%, reported 11.4003。At one point yesterday, the forex pair rose to 11.4017。The latter is the currency pair since January 22 (11.4216) the highest level since。