SEK: Ingves’ term extension no game changer – Nomura

Sandeep Kanihama FXStreet Contributor

Analysts at Nomura note that on Friday it was announced that Governor Ingves will continue for another five years as Riksbank Governor, having already served a 12-year term since January 2006.

Key Quotes

“EUR/SEK rallied towards 9.66 on the announcement, as expectations of a possibly more hawkish governor being appointed were removed. Near-term SEK appreciation may be slower, but we do not view this as a game changer for SEK.”

“We do not think the extension of Governor Ingves’ term is a game changer for SEK. The market’s pricing for Riksbank normalisation is not hugely at odds with the Riksbank’s own forecasts, particularly on policy expectations on a two-year horizon. As a result, a continuation of Mr. Ingves’ term as Governor (consistent with current forecasts) should not be a significant shock to the market. We believe arguments for SEK outperformance remain intact.”

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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