Analysts at ING suggest that the high-beta krona has weakened as global equity markets have fallen sharply and expect this correlation to continue to drive EUR/SEK over the coming week, especially in a relatively data-light week ahead.
Key Quotes
“Further risk-off moves in equities could easily push EUR/SEK towards the 10.50 level. While last week’s Riksbank meeting proved a non-event, the minutes of the October meeting published on Friday may provide some support for the krona if there are indications that the expected rate hike could come as soon as December. Set against that, we expect another weak PMI reading (on Thursday) could weigh on SEK.”
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