Stefan Mellin, Senior Analyst at Danske Bank, expects the Swedish Krona to gather further interest in the next months.
Key Quotes
“After a sharp rebound in the krona, EUR/SEK consolidated just above 9.40, our 3M target, ahead of the Riksbank February meeting”.
“The decision to keep the easing bias intact at -6bp was somewhat dovish, but market impact was muted. The Riksbank will probably end QE this summer, but at the same time it will not hike rates before well into 2018, in our view”.
“The former decision could lend support to the krona, but that effect would be mitigated by signalling a very slow hiking path, including maintaining the current easing bias for longer. We keep our forecast profile intact at 9.40, 9.30 and 9.20 in 3M, 6M and 12M and lower 1M from 9.50 to 9.40”.
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