EUR/SEK: Forecasts adjusted slightly downward – Danske Bank
|Analysts at Danske Bank revised lower their forecast for the Swedish krona versus the euro. They now see the EUR/SEK pair moving to 10.30 on a one to three month period and to 1.10 on a six to twelve months horizon.
Key Quotes:
“For a few months now, SEK has been in the hands of global drivers such as risk sentiment and the reflation story – and it is set to continue. With the Fed policy shift supporting further USD weakening and associated benign risk sentiment elongating the SEK-constructive environment, further downside in USD/SEK and EUR/SEK is opened for.
“Recent communication from the Riksbank signals that the SEK is no source of concern for the board just yet and as long as this applies, the SEK could probably strengthen further. However, any setbacks to the (mature) reflation narrative, risk of Fed disappointment or increased focus on mounting European challenges would likely weigh on the krona.”
“We find it prudent to adjust our profile slightly downwards. We see EUR/SEK at 10.30 (prev.10.40) in 1-3M and 10.10 (10.20) in 6-12M.”
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