SEK could gather some pace in the near term – Danske Bank

Mikael Milhoj, Senior Analyst at Danske Bank, assessed the prospects for the Scandinavian currency in the near term.

Key Quotes

“In our quarterly FX survey that was published yesterday, our clients have not given up on a recovery for the SEK, though they expect it to stay above 10.00 in 3M. Consensus expects a 1.5% drop in 3M down to 10.03”.

“The rally in EUR/SEK over the past months rhymes with the fact that clients have become more doubtful about a hike this year and re-pricing of the Riksbank”.

“However, they expect the SEK to strengthen in a no-hike scenario and despite an arguably negative outlook for the housing market. Danske Bank sees EUR/SEK at 10.30 in 3M”.