The Swedish Krona is still seen picking up pace in the next month on a likely rate hike by the Riksbank by year-end/early 2019, noted Morten Helt, Senior Analyst at Danske Bank.
Key Quotes
“We note that EUR/SEK, after the spike to 10.40ish (our 1M forecast) is again challenging 10.30-support and 200dma at 10.295″.
“We think it may be too early to write off near-term upside risks in EUR/SEK, although the krona should gain momentum as the first Riksbank rate hike in seven years draws closer”.
“Today’s Riksbank minutes could be market mover, where we look after any hints as to whether the Board members preferred December or February and how much weight they put at the many downside risks that were listed in the monetary policy report. In Reading the Markets Sweden, published later this morning, we touch upon growth and monetary policy divergence between the US and Sweden and how that affects the krona”.
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