EUR/SEK: Krona’s near-term outlook remains grim – ING

Losses in the Krona over the past week have exceeded those of any other G10 currencies. Economists at ING note that SEK recovery path remains very narrow, and almost fully dependent on market dynamics.

It is up to the market to turn the tide for the Krona

“The near-term outlook remains grim and it will almost entirely be up to market dynamics to change the tide for the Krona.”

“We think EUR/SEK could trade within a volatile 11.40/11.60 range into and shortly after the 29 June Riksbank meeting.”

“The best news for SEK would probably be an upside surprise in May inflation numbers, that could help the Riksbank sound more hawkish.”