A doubling of the QE pace has been pondered ahead of the Riksbank meeting on April 28, but a cut would be the final nail in the coffin for the otherwise relatively stable SEK, according to analysts at Nordea.
Key quotes
“The outcome space for EUR/SEK over the coming 1-2 quarters is skewed to the upside in our view.”
“Should EUR/SEK drop 3-4% from current levels, we would expect a cut to become likely, which can be seen as a de facto floor for EUR/SEK.”
“We go long EUR/SEK with a target of 11.25 and a stop loss at 10.66 in anticipation of Krona-negative Riksbank news later this month.”
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