EUR/SEK poised for further downside in the longer run - Danske Bank

Stefan Mellin, Senior Analyst at Danske Bank, sees the Swedish krona gathering traction within a year’s view.

Key Quotes

“EUR/SEK has edged higher mainly as a result of weakening risk appetite. While the looming UK EU referendum may weigh further on risk sentiment, the macro backdrop is highly supportive for the downside”.

“And we do assume that ‘Bremain’ will prevail and as such lend support to risk appetite eventually”.

“Riksbank board members have said that they will be more tolerant to SEK appreciation over and above forecast going forward (now it is on the weak side)”. 

“On balance, we raise our 1M forecast to 9.20 (9.10) and keep the 3-12M forecast intact at 9.10, 9.00 and 8.90”.