EUR/SEK to advance towards 10.10 as Riksbank reiterates a dovish position – Rabobank

The next Riksbank policy meeting is due on November 24. The central bank is likely to vindicate a cautious stance again. Subsequently, the EUR/SEK pair should grind higher, in the opinion of economists at Rabobank. 

Riksbank is unlikely to be a leader in the rate hiking cycle

“Sweden is a small, open economy and is unlikely to desire a significantly stronger value of the SEK vs. the EUR, given the potential impact on trade.”

“Given the likelihood that the Riksbank reiterates a dovish position in this meeting, there is room for some upward correction in EUR/SEK towards the 10.10/10.05 area on a one-to-three month view”