EUR/SEK points to the lower end of the range – Danske Bank

Chief Analyst at Danske Bank Jens Pedersen believes the cross could slip towards the lower band of the range in the next weeks.

Key Quotes

“EUR/SEK fell sharply on Tuesday following the higher-than-expected March inflation data”.

“The data only make us more confident that the Riksbank will stay put next week. We still seeEUR/SEK in a broad 9.10-9.50 range but clearly with the bias shifting to the lower end of the range”.

“Near-term psychological support comes in at 9.15 ahead of the low from 30 December last year at 9.1220, which was the day when the Riksbank issued a statement warning against SEK strength”.

“A break through 9.15 could trigger verbal intervention from the Riksbank again protecting the downside”.