EURSEK: Return to 10.00 or below requires a significant improvement in European sentiment – ING
|In the view of economists at ING, the Swedish Krona may struggle to enter a sustained uptrend next year given its elevated exposure to the eurozone’s growth story.
Eurozone exposure a drag on SEK
“We see some room for EURSEK to move lower throughout the year – also considering that we estimate the pair to be around 9.0% overvalued. However, the high risk of a prolonged energy crisis in the eurozone means that SEK is significantly less attractive than other pro-cyclical currencies next year.”
“Incidentally, SEK is highly correlated to the US tech stock market, which looks particularly vulnerable at the moment.”
“A return to 10.00 or below would likely require a significant improvement in European sentiment.”
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.