Chief Analyst at Danske Bank Jakob Christensen expects the Swedish Krona to gather some traction after the Riksbank meeting today.
Key Quotes
“In the Scandi markets, today’s Riksbank monetary policy decision on 9.30 CET will take centre stage. In our view, the interest rate market has discounted the end of QE for the end of June, and while we still believe that the Riksbank will avoid to send a hawkish signal, and thus lowering its rate path at the same time as it announces an end to QE, we still see risks skewed to the downside for EUR/SEK on the Riksbank, as the FX market might interpret the end of QE announcement more positively and send EUR/SEK lower”.
“However, we still prefer to wait entering/adding short positions until after the Riksbank meeting as we still think 9.60 is within reach. The FX option market indicates 6 figured movement on the Riksbank today”.
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