SEK stays vigilant on politics – Danske Bank
|Senior Analyst at Danske Bank Mikael Milhoj noted the political scenario in Sweden would be key in determining SEK’s price action in the near term.
Key Quotes
“Yesterday, the Riksdag selected the Moderate Andreas Norlén as Speaker, giving him the mandate of trying to form a government”.
“Today, Stefan Lofven is likely to lose a vote of ‘no confidence’, paving the way for an Alliance government. The key question remains how the Swedish Democrats will use its role as kingmaker”.
“If things go smoothly, a Prime Minister could be elected soon and if so, the political risk premium on the SEK should be reduced further. If a PM is not accepted after four attempts, an extra election must be held. In this less likely scenario, the SEK should come under renewed pressure”.
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.