With possible disruptions in global supply chains posing as a setback to recovery as well as the possibility of dovish surprise from the Riksbank, economists at Danske Bank pencil in EUR/SEK at 10.20 in three months and 10.30 in six months.
Riksbank neutral to the SEK, for now
“The SEK would be vulnerable to a dovish surprise from the Riksbank on 27 April given current market pricing, which is too hawkish in our opinion.”
“A temporary setback in the recovery due to global supply chain disruptions might weigh on the SEK and pose an upside risk to especially our short-term forecasts.”
“Inflation is close to a peak and the downtrend we see for the remainder of the year is in our thinking a key headwind for the krona.”
“Our constructive view on the USD is also set to weigh on the krona. In all, we raise 3M to 10.20 (10.10) and 6M to 10.30 (10.20), keeping 1M and 12M unchanged at 10.10 and 10.40.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.