Stefan Mellin, Senior Analyst at Danske Bank, keeps the constructive view on the Swedish Krona within a year’s view.
Key Quotes
“Our 1M 10.20 has been breached on the back of inflation data that is ‘OK-ish’, the Riksbank staying on track for now and continued, broad-based EUR weakness”.
“We are currently near-term neutral on EUR/SEK but we do look for a wider range over the summer”.
“We still think that the Riksbank will postpone the first hike beyond 2018 and that this will weigh on the SEK later in H2. On balance, we lower our 1M forecast to 10.10 (10.20), 3M to 10.20 (10.30), 6M to 10.40 (10.50) and leave the 12M forecast at 10.20″.
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