EUR/SEK risks extra upside – Danske Bank

In view of Allan von Mehren, Chief Analyst at Danske Bank, the Swedish Krona is exposed to further weakness in the short term.

Key Quotes

“EUR/SEK reached our 3M 10.30 target going into Easter in what seems to be a combination of risk-off, light holiday trading, relatively huge dividend payouts, which may (or may not) result in real outflows, and to some extent the market reassessing the Riksbank exit plans”

“As we enter a new dividend-heavy and Easter-light trading week, EUR/SEK remains vulnerable to the upside. Watch out for corrections though, as the cross is getting technically overbought”.