EUR/SEK to advance to 10.40 in 12 months as Riskbank faces inflation challenges – Danske Bank
|Economists at Danske bank see EUR/SEK in 10.10 in one-to-three months, before a move to 10.40 in 12 months on the medium-term inflation challenges that faces the Riksbank.
Key quotes
“We still argue that last year’s krona rally will come to a halt in the first half of 2021 as the recovery trades increasingly shift focus to medium-term inflation challenges that faces the Riksbank.
While inflation risks in the next couple of months seem fairly balanced, risks to monetary policy are skewed to the downside – especially since a negative ‘inflation gap’ starts opening up in H2 2021. This policy asymmetry is not reflected in pricing which is too steep in our view and thus a medium-term headwind for the SEK.
“We keep EUR/SEK 1M at 10.10 (unchanged), 3M at 10.10 (10.00), 6M at 10.20 (10.20) and 12M at 10.40 (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.