EUR/SEK: Economic outlook will likely weigh on SEK – Danske Bank

The economic outlook will likely weigh on SEK despite massive stimuli and so will the expected April cut from the Riksbank, in the opinion of analysts at Danske Bank. 

Key quotes

“We maintain our call for a 25bp cut at the April meeting. There is a chance that the Riksbank waits before re-entering negative territory, but also see a chance for 50bp. A rate cut is not fully priced and should weigh somewhat on the SEK.”

“The outlook for SEK remains dismal. We see EUR/SEK at 11.00, 11.20 and 11.20 in 3M, 6M and 12M, respectively.”