Riksbank expected to remain ‘on hold’ – Danske Bank

Analyst Jens Sorensen at Danske Bank has ruled out any changes in the Riksbank’s message at this week’s meeting.

Key Quotes

“If we are right about the Riksbank not sending any new signals to markets, we would expect to see a repetition of the EUR/SEK price action from the 7 September meeting”.

“In other words, EUR/SEK would rise somewhat (3-5 figures) as a ‘wait and see’ message, prior to the ECB meeting, would be interpreted as a bias towards ‘low for longer’ and thereby ‘weak SEK for longer’. In this sense, a happy behind the curve Riksbank would continue to be a headwind for the SEK. In summary, we continue to see EUR/SEK as a near-term 9.50-9.65 range play”.