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Economists at Danske Bank see limited scope for more Swedish krona strength near-term regarding inflation expectations and forecast the EUR/SEK pair at 10.50 on a one-to-three month view.

Key quotes

“We still expect Swedish GDP to fall by 4-5% this year and have yet to see any indications that the less stringent Swedish restrictions will yield any growth advantage.”

“As communicated by Ingves, the Riksbank will not accept low inflation and the exchange rate has an important role to play. This continues to be a medium-term headwind for the SEK.”

“We forecast EUR/SEK at 10.50 in one-to-three months and 10.70 in six-to-twelve months.”