EUR/SEK: Krona unlikely to gain significant ground in the short-term – Commerzbank

EUR/SEK is trading slightly above the 10.60 level. Economists at Commerzbank expect the Swedish krona to remain under pressure for the time being.

Risk aversion continues to be in the driver's seat on the market

“If, in the event of a recession, the Riksbank attaches greater importance to the economic consequences than to the price risks, this could give the krona a blow. However, if the market ultimately concludes that the ECB is more responsive to economic risks in its monetary policy than the Riksbank, the SEK could appreciate more strongly against the euro again.”

“For the time being, risk aversion continues to be in the driver's seat on the market as long as it is not clear what will happen with gas flows to Europe, which is why it should basically be difficult for the krona to gain significant ground in the short-term.”