EUR/SEK expected to drift lower on the medium-term – Rabobank
|The positive EUR/SEK trend witnessed over the last eight years might have come to an end, according to the FX analysis team at Rabobank, that sees the euro aiming to 10.30 ad drifting lower on the mid-term.
Key quotes
“In recent weeks a consensus has been building that the Swedish economy will suffer a less severe fall out from the covid-19 crisis than either the EU or the US. The obvious assumption is that the lack of a formal lockdown in Sweden this year helped protect aspects of the economy, though the cost was a heavier death toll than its neighbours.”
“One potential concern for the Riksbank is that there are signs that the upward trend in EUR/SEK that persisted between 2012 and the start of this year is showing signs of reversing. This is likely to reinforce the dovish rhetoric from the central bank. While the Riksbank is likely to continue talking down the value of the SEK through its reference to policy options, we expect to see EUR/SEK10.30 on a 3-month view and for the currency pair to drift lower medium-term.”
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.