SEK’s high correlation with EU-related sentiment has proven detrimental in the past few days, with the krona being the worst-performing G10 currency after the battered AUD and NZD. Economists at ING have a mildly bearish bias for the Swedish krona against the euro as March draws to an end.
Key quotes
“With EU sentiment possibly remaining subdued this week, we could see SEK continue to follow the EUR lower, especially considering the lack of possibly offsetting factors like the case of rebounding oil prices for NOK.
“The release of March’s economic tendency survey may be important to gauge the state of the Swedish economy, but its impact on SEK should be short-lived and virus-related news in Europe should remain the primary driver.”
“On the central bank side, keep an eye on the speech by Riksbank’s Governor Stefan Ingves on Tuesday.”
“EUR/SEK may continue to hover around the 10.200 level this week.”
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