EUR/SEK seen moving back to 10.80 on a 12-month view – Rabobank
|The Swedish Krona (SEK) has given back some of the ground it won vs. the Euro (EUR) in the final two months of last year. Economists at Rabobank analyze EUR/SEK outlook.
EUR/SEK to trend lower towards 11.00 on a 3-to-6-month view
A cautious outlook on rates from the Riksbank combined with a dash of optimism that the domestic economic outlook should improve later this year suggests scope for the SEK to regain its footing and for EUR/SEK to trend lower towards 11.00 on a 3-to-6-month view.
Despite the SEK’s improved tone late last year, EUR/SEK remains well above its 5-year average. A weak currency will add to inflation risks. However, it can also generate growth through the export channel; signs of this may now be emerging. We would expect EUR/SEK to continue its normalisation this year and move back to 10.80 on a 12-month view.
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.