EUR/SEK seen at 9.10 in 12-month – Danske Bank

Stefan Mellin, Senior Analyst at Danske Bank, expects the cross to grind lower towards 9.10 in a year’s view.

Key Quotes

“EUR/SEK unexpectedly decoupled from risk sentiment in July after trading close to each other for most of this year. We think this partly reflected ‘summer markets’.

“In our view, the Riksbank is likely to stay obsessed with the krona exchange rate and as such closely track the ECB, trying to keep the krona in check at current levels in an attempt to prevent inflation falling back”.

“We think the Riksbank and a slowdown in growth will keep the krona fundamentally weak throughout this year. We maintain our forecast profile at 9.40 in 1M, 9.30 in 3M, 9.30 in 6M and 9.10 in 12M”.