Senior Analyst at Danske Bank Kristoffer Lomholt assessed the recent performance of the Swedish Krona.
Key Quotes
“The SEK has edged slightly higher, from a strictly Swedish perspective, on a relatively quiet day”.
“The Swedish political arena still resembles trench warfare and now it is up to Stefan Löfvén to give it a go and try to broker peace. We believe this to be hard fought, and there is probably no quick fix readily available”.
“Given the political risks, both domestic and abroad, we see EURSEK at 10.40 in the near term (1M). EURSEK at, or above, 10.40 might provide good risk reward for shorts in anticipation of the December hike and then a second hike next summer, which is now our base case”.
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