Chief Analyst at Danske Bank Jens Sorensen believes the Swedish Krona could depreciate towards the psychological 10.00 handle in the short term.
“In Scandies, EUR/SEK remains bid after the break of the 9.80 level and given the already relatively steep Swedish yield curve, lower-than-expected CPIF inflation and concerns about the housing market (including the likely negative spill-over to GDP growth), it is quite difficult to find SEK-positive arguments right now”.
“Hence, while EUR/SEK looks increasingly overbought both technically and according to our short-term financial valuation model, we still see risks skewed to the upside near term”.
“Looking at price actions in November last year, when EUR/SEK touched the 10.00 level, the break of 9.90 may open up for a test of the 10.00 figure in coming days”.
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 securities. 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 Forex 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.