10 Mar 2016
EUR/SEK confined to a 9.10-9.50 range – Danske Bank
Allan von Mehren, Chief Analyst at Danske Bankm, expects the cross to remain in a consolidative pattern between 9.10 and 9.50.
Key Quotes
“Yesterday, EUR/SEK fell sharply following comments from the Riksbank’s Cecilia
Skingsley that she is becoming more long term and has greater tolerance for oil price shocks”.
“She also indicated that she will accept a stronger currency and that it could become stronger than the central bank’s forecast”.
“As such, Skingsley is now sending the same signals as Martin Floden and Henry Olsson from the Riksbank”.
“The comments could be interpreted as a sign that the Riksbank is nearing the lower bound on policy rates”.
“We continue to see EUR/SEK in a 9.10-9.50 range but after Skingsley’s comments the risks are skewed to the lower half of the range”.
Key Quotes
“Yesterday, EUR/SEK fell sharply following comments from the Riksbank’s Cecilia
Skingsley that she is becoming more long term and has greater tolerance for oil price shocks”.
“She also indicated that she will accept a stronger currency and that it could become stronger than the central bank’s forecast”.
“As such, Skingsley is now sending the same signals as Martin Floden and Henry Olsson from the Riksbank”.
“The comments could be interpreted as a sign that the Riksbank is nearing the lower bound on policy rates”.
“We continue to see EUR/SEK in a 9.10-9.50 range but after Skingsley’s comments the risks are skewed to the lower half of the range”.