EUR/SEK: Monetary policy divergence to weigh on the krona in the second half of 2021 – Danske Bank
|The near-term outlook is SEK supportive and economists at Danske Bank expect the EUR/SEK pair to be at 10.00 in three months, before monetary policy divergence weighs on SEK in the seconf half of the year.
Key quotes
“The global recovery is set to continue in 2021, at a slower pace but with different implications for central banks. We expect to see markets starting to price in monetary policy divergence (to some extent they already have), although we do not believe it will be a straight line.”
“We expect the Fed and Norges Bank to be relative frontrunners, with the ECB and Riksbank relative laggards. Actually, we see room for pricing in higher probability of a rate cut in Sweden.”
“We keep our forecast profile intact at 1M 10.10, 3M 10.00, 6M 10.20 and 12M 10.30.”
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.