5 Mar 2015
SEK faces potential strength towards year-end – BAML
FXStreet (Edinburgh) - The prospects for the Swedish krona remain positive, pointing to 9.1000 v. the euro towards the end of 2015, according to analysts at BAML.
Key Quotes
“The Riksbank seems determined to contain SEK strength that would counter their efforts to stimulate inflation”.
“This should weigh on SEK in the near term. But in the face of open-ended ECB QE, we feel that the Riksbank will have less scope to expand its balance sheet”.
“Furthermore, if Sweden continues to develop positively, helped by ECB QE which should support Swedish exports, additional aggressive easing will be harder to justify”.
“The medium term outlook for SEK remains positive. We cautiously maintain our forecasts at 9.50 in 1Q15 and 9.10 by yearend for EUR/SEK, but will re-evaluate if data suggests further Riksbank easing”.
Key Quotes
“The Riksbank seems determined to contain SEK strength that would counter their efforts to stimulate inflation”.
“This should weigh on SEK in the near term. But in the face of open-ended ECB QE, we feel that the Riksbank will have less scope to expand its balance sheet”.
“Furthermore, if Sweden continues to develop positively, helped by ECB QE which should support Swedish exports, additional aggressive easing will be harder to justify”.
“The medium term outlook for SEK remains positive. We cautiously maintain our forecasts at 9.50 in 1Q15 and 9.10 by yearend for EUR/SEK, but will re-evaluate if data suggests further Riksbank easing”.