7 Oct 2015
EUR/SEK downside appears limited – Danske Bank
FXStreet (Edinburgh) - According to Mikael Milhoj, Analyst at Danske Bank, the likeliness of the Riskbank to act could add downside pressure to the Swedish krona.
Key Quotes
“We still expect the downside in EUR/SEK to be ‘protected’ by the Riksbank or rather by expectations about what the Riksbank might do”.
“We expect another 10bp cut and extension of the current QE programme at the December meeting at the latest”.
“There is a good chance that it moves already in October, though – or even outside a regular policy meeting - which is not fully reflected in market pricing. Hence, we expect to see some upward pressure in EUR/SEK over the next few weeks”.
Key Quotes
“We still expect the downside in EUR/SEK to be ‘protected’ by the Riksbank or rather by expectations about what the Riksbank might do”.
“We expect another 10bp cut and extension of the current QE programme at the December meeting at the latest”.
“There is a good chance that it moves already in October, though – or even outside a regular policy meeting - which is not fully reflected in market pricing. Hence, we expect to see some upward pressure in EUR/SEK over the next few weeks”.