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While global markets remain cautious, analysts at ING expect SEK to remain under pressure from the domestic channel.

Key Quotes

“Investors will also start factoring in the upcoming general election on 9 September. Polls suggest the likely outcome is a hung parliament and record support for the far-right, anti-EU Sweden Democrats.”

“A messy election and potentially lengthy negotiations to form a new government mean political uncertainty and could easily become another negative factor for SEK over the coming months.”

“If global sentiment remains poor, we could easily see EUR/SEK rising towards 10.55-10.60 on back of both negative domestic and geopolitical stories.”