EUR/SEK: The current krona losses are once again excessive – Commerzbank

FXStreet Insights Team FXStreet

The Swedish krona is unable to escape recession fears. But in the view of economists at Commerzbank, the EUR/SEK pair should move back down to the 10.35 area.

Riksbank is turning into a hawk

“EUR/SEK is once again trading above 10.70. However, I urge caution in this context as the ECB will have to meet the market expectations this week, as otherwise there is potential for a correction in the euro.”

“The Riksbank expects interest rates to peak at 2% in mid-2023. I assume that it will hike its key rate by 75bp on 20th September and raise its rate path. Moreover, it is likely to continue sounding hawkish. As a result, the Riksbank should then be on a par with the ECB.”

“If market sentiment has also improved at that point there is nothing preventing EUR/SEK exchange rates in the area of 10.35 any longer so I stick to my view that the current SEK losses are once again excessive.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD gains traction above 1.1950 on Fed uncertainty

The EUR/USD pair trades on a positive note near 1.1980 during the early European session on Thursday. The US Dollar remains weak against the Euro amid uncertainty over US economic policies. The Eurozone Consumer Confidence and US Initial Jobless Claims reports are due later on Thursday.

GBP/USD hesitates at four-year highs following lackluster Fed rate hold

GBP/USD churned in place on Tuesday, hitting a brief patch of volatility but otherwise holding steady near four-year highs as the US Dollar struggles to find its footing. The Federal Reserve held interest rates steady, as many investors broadly anticipated, but the Fed’s rate statement and Fed Chair Jerome Powell both failed to give any hints about potential shifts toward future rate cuts, which many investors broadly hoped.

Gold pulls back after testing $5,600 for first time on record

Gold price refreshed record highs near $5,600 before retreating to near $5,525 in Asian trading on Thursday. The bright metal's relentless upsurge has been bolstered by strong safe-haven demand amidst persistent geopolitical tensions, economic uncertainty, and a weaker US Dollar.

Top Crypto Gainers: Worldcoin, Canton, Jupiter hold gains as the market corrects

Worldcoin, Canton, and Jupiter hold gains over the last 24 hours as the broader cryptocurrency market stalls after the US Federal Reserve announced keeping the interest rates unchanged on Wednesday. Worldcoin is in a pullback, while Canton and Jupiter are near key resistance levels. Technically, the top gainers over the last 24 hours could reverse as headwinds intensify.

Federal Reserve pauses, sees economy on firm footing

At its January meeting, the Federal Reserve kept the Fed Funds Target Range (FFTR) unchanged at 3.50%–3.75%, a decision that was fully in line with market expectations.

Bittensor Price Forecast: TAO rallies above $240 as AI tokens rebound

Bittensor reclaims $240 immediate support, reflecting positive sentiment in the broader crypto market. The TAO derivatives market signals retail interest return as futures Open Interest climbs to $163 million.