SEK to lag other cyclical FX in 2020 – ING
|ING analysts are expecting the SEK to be a laggard in the G10 FX cyclical space next year and, within the region, but prefer NOK.
Key Quotes
“Even after rate hike, the SEK implied yield will remain the lowest among G10 cyclical currencies, the real yield is very negative, and the domestic economic and inflation outlooks remain challenging.”
“Although SEK is deeply undervalued on a medium term basis, so are the likes of NOK, NZD or AUD. This, in turn, suggests no meaningful relative advantage for the krona. Hence, on the carry-valuation matrix, SEK doesn’t stand out. In fact, the currency lags its peers.”
“Our profile for EUR/SEK for 2020 is very flat, with limited upside and downside to the cross. We expect the cross to hover around the current levels for most of 2020.”
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.