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.)

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