SEK: Expected decline in Swedish CPI unlikely to weigh - ING

Sandeep Kanihama FXStreet Contributor

Analysts at ING point out that the key data point of the week for SEK is the Sweden Oct inflation (Tue) and they expect a correction lower as the energy-related base effects and erratic factors contribute to a decline in prices.

Key Quotes

“Although this may translate into a knee-jerk reaction in EUR/SEK higher, this should be limited and short-lived given that a decline in CPI is a consensus view.”

“With EUR/SEK trading somewhat rich vis-à-vis its short-term financial fair value, we see an upside to EUR/SEK as very limited, with valuation (both short- and medium-term) providing a cushion to SEK. The Sweden Oct unemployment rate (Thu) should have a non-negligible effect on SEK.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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