Economists at Danske Bank expect EUR/SEK to move higher over the coming months to 11.20 due to weak growth dynamics, relative monetary policy and the Riksbank’s disregard for SEK weakness.
Range-bound near-term, then higher
“We stick to our non-consensus view on the SEK amid weak growth dynamics, especially for Europe, scope for another downturn in global equities and relative monetary policy where the Riksbank is far behind the Fed and treats the SEK with benign neglect. Furthermore, the interest-rate weapon is a double-edged sword for the SEK as too much tightening runs the risk of hurting the housing market and thus scaring away investors from SEK assets. These factors suggest that the EUR/SEK uptrend in 3-6M remains intact.”
“In the 6-12M perspective, the Fed pivot and generally bigger optimism about the global economy may be real and with that a sustainable recovery in risk assets and the SEK.”
“Forecast: 10.80 (1M), 11.00 (3M), 11.20 (6M), 11.00 (12M).”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
