EUR/SEK: Forecast profile kept unchanged – Danske Bank

FXStreet Insights Team FXStreet

Danske Research Team keeps its EUR/SEK outlook unchanged. The cross is currently trading comfortably around 10.80, with NOK/SEK back above 0.98. The bank maintains its existing forecast profile, projecting EUR/SEK at 11.00 over a 6–12 month horizon, reflecting a relatively stable Swedish Krona (SEK) backdrop and no major reassessment of fundamentals.

EUR/SEK seen near 11.00 later

"In Sweden, the Riksbank's Per Jansson said the food VAT cut is exerting downward pressure on inflation, while higher energy costs are pushing inflation up. He therefore noted that this supply shock can largely be looked through, though vigilance remains warranted. He added that the situation remains different from 2022 as inflation pressure is now lower, demand is weaker and SEK is stronger."

"Meanwhile, EUR/SEK is comfortable around 10.80 for the time being."

"For EUR/SEK, we leave our forecast profile unchanged, forecasting EUR/SEK at 11.00 in 6-12M."

"For EUR/NOK, we remain skeptical with respect to the longevity of the rally and thus leave our forecast profile unchanged this month keeping an upward slope in 6M and 12M."

As a result, NOK/SEK is back above 0.98. EUR/DKK is stuck close to the 7.4732 level.

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD treads water above 0.7000 ahead of the RBA

AUD/USD alternates gains with losses just above the 0.7000 yardstick ahead of the opening bell in Asia on Tuesday. The pair’s decline follows the Greenback’s decent advance in a context of heightened geopolitical effervescence. Moving forward, the RBA is expected to hike its OCR to 4.60%.

USD/JPY climbs back toward 158.00 after BoJ minutes amid firm USD

USD/JPY finds dip-buyers and reverses part of Friday's slide driven by speculation that authorities will step in again to prop up the Japanese Yen. However, the BoJ's dovish Minutes cap the JPY. Meanwhile, the US Dollar regains traction as the US-Iran standoff supports crude oil prices, fueling inflation fears and reaffirming bets for an October Fed rate hike. This further supports the pair, driving it back toward 158.00.

Gold tumbles further; focus shifts to $4,100

Gold kicks in the week on the back foot, selling off to the vicinity of the $4,100 mark per troy ounce, levels last traded back in early August. The resurgence of geopolitical concerns in combination with the firmer US Dollar and rising US Treasury yields keep the yellow metal under heavy pressure on Monday.

Strategy buys 1,665 Bitcoin amid renewed geopolitical tensions

Bitcoin (BTC) dropped below $84,000 on Monday as Strategy (MSTR) announced a fresh treasury purchase of $143 million last week, boosting its holdings to 847,666 BTC. The company purchased 1,665 BTC for roughly $142.7 million, according to a filing with the Securities and Exchange Commission (SEC) on Monday.

The week ahead: A key moment for the global economy as threats rise

UK diesel hits a record, as economic concerns rise. The market expects an aggressive Fed rate hiking cycle, but is it necessary? Oil supply concerns ease, even as oil prices rise. What’s next for the AI trade.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.