EUR/SEK poised for further downside – Danske Bank

Pablo Piovano FXStreet

Senior Analyst at Danske Bank Stefan Mellin sees the Swedish Krona slowly appreciating in the next months.

Key Quotes

“We think that the Riksbank remains too optimistic on inflation and if it decides to end QE this summer, which we believe, it may want to delay hikes instead in order to mitigate excessive SEK appreciation and keep inflation expectations close to target”.

“We still do not see a first hike before well into next year. The macro backdrop and valuation still suggests that EURSEK will head lower, but when considering the likely Riksbank reaction over the coming months, we have a relative flat forecast trajectory. We forecast EUR/SEK at 9.40 in 3M”.

1. R3 9.4841
2. R2 9.4743
3. R1 9.4684
PP 9.4586
1. S1 9.4527
2. S2 9.4429
3. S3 9.4370

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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