SEK stands a good chance to gain ground against the EEUR over the course of the year – Commerzbank

Antje Praefcke, FX Analyst at Commerzbank, expects the Swedish Krona to strengthen against the Euro latter in the year.

EUR/SEK should have peaked when it moved towards 11.40-50 this year

“As long as the ECB is perceived as the more restrictive central bank, with the market expecting two further rate steps, the Krona is struggling to record sustainable gains against the Euro. I am nonetheless of the view that EUR/SEK should have peaked when it moved towards 11.40-50 this year”. 

“In the Eurozone too inflation will fall, economic and inflation data will weaken as a result of past rate hikes and the market might have to get used to the idea that the ECB will only hike the key rate one more time rather than twice.”

“It might take a little while yet, but I think that SEK stands a good chance to gain ground against the Euro over the course of the year.”