EUR/SEK: Buy on dips – Nordea
|In view of analysts at Nordea Markets, while the Riksbank's 2nd hike was not the formal start of a hiking cycle, it arguably felt as one and the pattern suggested a bottom in EURSEK between 10.40 and 10.50 after the hike in December, and that the cross would bounce after the hike - as it has indeed started doing.
Key Quotes
“Now the pattern suggests a move to the 10.60-10.70 area. In related news, the Riksbank's krona-killing machine is still running (Riks' balance sheet expansion), SE growth expectations are still falling relative to the EA's, and the SE surprise index (CESISEK) is back in negative territory. Good times. Well, not for the SEK. Nordea's forecast for December's inflation figures is in line with the Riksbank's view, but weaker inflation in Norway could fuel some speculation of a disappointment also in Sweden.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.