In view of Jens Pedersen, Senior Analyst at Danske Bank, the outlook on the Swedish currency seems positive in the near term horizon.
Key Quotes
“In Scandies, risk aversion took a firm grip on EUR/SEK yesterday as the Italian crisis escalated, and price action suggests Sweden’s AAA status is not yet a strong attraction”.
“While the Riksbank expects a stronger SEK, a euro crisis would see SEK appreciation for the wrong reasons. Our short-term models have fair value in the 9.20-30 region for what it’s worth (which is perhaps not so much right now)”.
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