EUR/SEK seen grinding lower post-Riksbank – Danske Bank
|Chief Analyst at Danske Bank Jakob Christensen expects the Swedish Krona to gather some traction after the Riksbank meeting today.
Key Quotes
“In the Scandi markets, today’s Riksbank monetary policy decision on 9.30 CET will take centre stage. In our view, the interest rate market has discounted the end of QE for the end of June, and while we still believe that the Riksbank will avoid to send a hawkish signal, and thus lowering its rate path at the same time as it announces an end to QE, we still see risks skewed to the downside for EUR/SEK on the Riksbank, as the FX market might interpret the end of QE announcement more positively and send EUR/SEK lower”.
“However, we still prefer to wait entering/adding short positions until after the Riksbank meeting as we still think 9.60 is within reach. The FX option market indicates 6 figured movement on the Riksbank today”.
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.