SEK expected to appreciate further – Danske Bank

Senior Analyst at Danske Bank Kristoffer Lomholt keeps the bullish outlook for the Swedish Krona in the upcoming months.

Key Quotes

“For EUR/SEK we saw a new test below 9.50 yesterday, seemingly backed by the move in EUR/NOK, although still shy of the 13 January low at 9.4700 which came on the back of the Riksbank minutes”.

“The pair is still in a downtrend, but whether the next leg is a break or a correction could be decided by this week’s Swedish data batch which peaks tomorrow, although today’s inflation expectation reading should also be watched closely. It is of utmost importance that expectations do not fall back again and we have no reason to expect they will”.

“We remain strategically bullish on the krona, but prefer to await better entry levels before adding to short EUR/SEK positions”.