An “invisible hand” in EUR/SEK? Economists at Commerzbank analyze the pair’s outlook.
A bit of an aftertaste in Sweden
The price move in EUR/SEK since the Riksbanks’s rate decision last week looks suspiciously like an ‘invisible hand’ having intervened on the market, trying to prevent a rise above 11.46.
I find it quite interesting that the downside potential in SEK seems to suddenly be limited (or being limited) following the rate decision last week which the market interpreted as not being sufficiently restrictive, reacting with SEK sales.
It is understandable that the Riksbank uses the FX sales, which it is going to implement anyway, at a time that ensures that undesirable losses in SEK following the rate meeting can be avoided, but they nonetheless leave a bitter aftertaste.
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