Chief Strategist at Danske Bank Valtteri Ahti expects the Swedish Krona to gain traction in the short-term horizon.
Key Quotes
“We have changed our call on the Riksbank and now expect it to hike the interest rate in December”.
“In our view, it should lend support to the SEK and pull EUR/SEK sharply lower in a 3M perspective. At the same time, if we get a ‘one and done’ hike, where it kicks the ‘planned hikes’ for 2019 down the road – our new base scenario – EUR/SEK is not likely to continue to trend lower over time”.
“Instead, based on current pricing in the money market, we expect EUR/SEK to move more sideways in a 6-12M perspective”.
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