According to analysts at Danske Bank, weaker-than-expected domestic data (retail sales, trade balance, NIER) of Sweden have weighed on the SEK over the recent weeks and today’s services PMI may just add to the poor cyclical sentiment.
Key Quotes
“The Swedish macro surprise index has reached historically stretched, i.e. downbeat, levels, suggesting that a lot of negativity is already priced into EURSEK. Looking at RSI, the cross has reached technically overbought territory. Our short-term model based on relative rates and a proxy for risk has fair value at around 10.25.”
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