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19 May 2014
EUR/SEK upside to 9.10 in the near term – Danske Bank
FXStreet (Edinburgh) - In the opinion of Sverre Holbek, Senior Analyst at Danske Bank, there is still potential for further gains in the EUR/SEK.
Key Quotes
“The Swedish krona got further tailwind last week on the back of the higher-than-expected CPI figures, where Swedish inflation moved closer to the Riksbank’s forecast and away from the ‘deflation zone’”.
“We expect today’s labour market report in Sweden to show a tad better employment, which might support the krona. However, inflation remains the most important figure for the Riksbank at the moment and, as our economists have no doubt that inflation will decline again in May, a rate cut still appears to be the most likely outcome of the Riksbank’s rate decision on 3 July”.
“Hence, EUR/SEK upside risks remain despite further ECB easing and in our new FX Forecast Update that we published last week, we pencilled in a move higher to 9.10 in one month’s time, while we have kept our six- to 12-months’ target unchanged at 8.90 and 8.75, respectively, as the global and the Swedish growth outlook are medium-term supportive factors for the krona”.
Key Quotes
“The Swedish krona got further tailwind last week on the back of the higher-than-expected CPI figures, where Swedish inflation moved closer to the Riksbank’s forecast and away from the ‘deflation zone’”.
“We expect today’s labour market report in Sweden to show a tad better employment, which might support the krona. However, inflation remains the most important figure for the Riksbank at the moment and, as our economists have no doubt that inflation will decline again in May, a rate cut still appears to be the most likely outcome of the Riksbank’s rate decision on 3 July”.
“Hence, EUR/SEK upside risks remain despite further ECB easing and in our new FX Forecast Update that we published last week, we pencilled in a move higher to 9.10 in one month’s time, while we have kept our six- to 12-months’ target unchanged at 8.90 and 8.75, respectively, as the global and the Swedish growth outlook are medium-term supportive factors for the krona”.