EUR/SEK seen at 9.20 in 12-month – Danske Bank
|Stefan Mellin, Senior Analyst at Danske Bank, believes the cross could target the 9.20 area within a year’s view.
Key Quotes
“EUR/SEK has turned markedly lower since June. The drop from around 9.80 to current levels can be justified by the repricing of relative rates, which in turn has been driven by a long-awaited surge in Swedish inflation. We expect inflation to stay above 2% for most of 2017 and also at or above the Riksbank forecast”.
“This will serve as a cap on EUR/SEK, whereas a significant appreciation of the SEK from here still requires a marked shift in policy stance from the Riksbank We look for continued range-trading around 9.50 in the next few months. We maintain our forecast profile intact at 9.50, 9.40, 9.30 and 9.20 in 1M, 3M, 6M and 12M, respectively”.
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