FXstreet.com (Barcelona) - TD Securities analysts find the SEK interesting “as its correlation with risk sentiment continues to evolve”, as it became a quasi-safe haven on the Eurozone crisis scenario from being formerly one of the most correlated currencies to equity performance due to Sweden’s small, open economy.
“Swedish economic data has been particularly disappointing recently, and the trend continued this week as the PMI missed consensus expectations for a third month in a row weakening the currency and leaving 2 year yields around 40bp lower than they were two months ago”, they wrote, expecting the Riksbank to keep rates unchanged this month. “Next week’s releases of industrial production and CPI will be the key to the decision and if these prints do not disappoint and we see EUR/SEK approach 8.67, we would be tempted to enter a long SEK position”, they added.
“Swedish economic data has been particularly disappointing recently, and the trend continued this week as the PMI missed consensus expectations for a third month in a row weakening the currency and leaving 2 year yields around 40bp lower than they were two months ago”, they wrote, expecting the Riksbank to keep rates unchanged this month. “Next week’s releases of industrial production and CPI will be the key to the decision and if these prints do not disappoint and we see EUR/SEK approach 8.67, we would be tempted to enter a long SEK position”, they added.
