13 May 2014
EUR/SEK buy on dips – Danske Bank
FXStreet (Edinburgh) - In the view of Jens Pedersen, Analyst at Danske Bank, any pullbacks in EUR/SEK would be a buying opportunity.
Key Quotes
“In Scandinavia focus turns to Swedish CPI for April. Our forecast for the underlying CPIF measure is in line with the consensus forecast at 0.4%”.
“If we are correct, Swedish inflation has moved closer to the Riksbank forecast and away from the "deflation zone". It might give some support to the Swedish krona, especially as risk appetite in global equity markets is high”.
“However, any support is expected to be short lived”.
“We expect inflation to drop back again here in May and see no reason why the Riksbank will not cut rates in July. Hence, we would buy EUR/SEK if it drops below 9.00 today”.
Key Quotes
“In Scandinavia focus turns to Swedish CPI for April. Our forecast for the underlying CPIF measure is in line with the consensus forecast at 0.4%”.
“If we are correct, Swedish inflation has moved closer to the Riksbank forecast and away from the "deflation zone". It might give some support to the Swedish krona, especially as risk appetite in global equity markets is high”.
“However, any support is expected to be short lived”.
“We expect inflation to drop back again here in May and see no reason why the Riksbank will not cut rates in July. Hence, we would buy EUR/SEK if it drops below 9.00 today”.