EUR/SEK to enjoy further gains towards 11.20 over coming months – Danske Bank
|Economists at Danske Bank continue to expect EUR/SEK to move higher in the coming 12 months to 11.20 on the back of rising concerns for global recession and the expectation of a substantial drag on domestic demand and real asset prices.
Weakness in store
“We are negative on the krona as the SEK usually underperforms in a global, in particular European, recession risk-off environment and also since the Riksbank’s tightening of financial conditions will (is intended to) be a substantial drag on domestic demand and real asset prices.”
“We look for weaker SEK in the 6-12M perspective, forecasting 11.20 in 12M.”
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