Jane Foley, Senior FX Strategist at Rabobank, notes that it may be a case of over-sensitivity, but the value of the SEK vs. the EUR dropped sharply this morning on the back of a newspaper report that Sweden’s Democrats party was calling for a referendum on the country’s EU membership. Key Quotes “Sweden’s Democrats won sufficient votes to enter parliament in 2010 and scored almost 13% of the vote in the last election in 2014. Ahead of the next general election due in September, however, support for the far right party has strengthened.” “The rise in the popularity of the far right has caused the governing Social Democrats to promise to tighten labour immigration if they are put back in power in September. However, if attempts by the mainstream parties to draw votes away from the far right stalls and the trend in favour of Sweden’s Democrats persists, it could be the second largest party in parliament after the election on September 9. Even then, however, it could still find itself alienated in parliament. This means it may still be difficult for the Sweden Democrats to find sufficient support amongst lawmakers to call a referendum, never mind to persuade Swedes to vote to leave the EU.” “Last June the Pew Research Centre published a paper showing an increase in popular support for the EU in many member states in the aftermath of the UK’s decision to leave.” “This shows that 53% of Swedes are in favour of EU membership up from 49% in 2016, while the proportion of people who would vote to leave dropped to 18% from 23%.” “Although it seem premature for the SEK to be rocked by the fears of a wave of anti-EU sentiment, the rise of the far right in Sweden and concerns about immigration policies echo trends seen elsewhere in the region. If politicians fail to put in place appropriate polices, it may be only a matter of time before populism gains strength. This is a potential threat not just for the SEK but for the EUR also.” “While the market may have overreacted to today’s news regarding a potential EU referendum in Sweden, the climb in the value of EUR/SEK in recent sessions suggests that the recent strengthening in the value of the SEK may have shaken out many short SEK positions.” “Given the risk of a Riksbank rate hike ahead of the ECB, we would view pullbacks to EUR/SEK10.40 as a selling opportunity and look for a move towards 10.10 on a 3 mth view. That said, we concede that election uncertainty could increase volatility.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next IOTA price analysis: IOT/USD jumps a whopping 5% on the day, it’s a celebration for the Bulls after price hit rock-bottom FX Street 3 years Jane Foley, Senior FX Strategist at Rabobank, notes that it may be a case of over-sensitivity, but the value of the SEK vs. the EUR dropped sharply this morning on the back of a newspaper report that Sweden's Democrats party was calling for a referendum on the country's EU membership. Key Quotes "Sweden's Democrats won sufficient votes to enter parliament in 2010 and scored almost 13% of the vote in the last election in 2014. Ahead of the next general election due in September, however, support for the far right party has strengthened." "The rise in the popularity of… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.