EUR/SEK keeps the upside unchanged – Danske Bank

Senior Analyst at Danske Bank Kristoffer Lomholt keeps the bearish view on the Swedish Krona for the time being.

Key Quotes

“After having reached our 10.00 Q1 target it is still hard to see what could sustainably reverse the uptrend in EUR/SEK”.

“On the contrary, new information has emerged that rather reinforces our negative outlook on the krona. If we are right in our macro case of weaker growth and lower inflation we think that there is a good chance that EUR/SEK will stay above 10 for longer”.

“Hence, while staying negative on the krona, we have adjusted the forecast profile somewhat higher, to 10.10 (previously 9.90) in 1M, 10.20 (10.00) in 3M, 10.20 (9.90) in 6M and 10.00 (9.80) in 12M. The risk to the forecast, i.e., the risk that the SEK embarks a sustained appreciation trend is first and foremost related to inflation”.