SEK looks to elections and the Riksbank – Danske Bank

Jens Pedersen, Senior Analyst at Danske Bank, gives his view on the upcoming key events around the Swedish Krona.

Key Quotes

“EUR/SEK has been fairly range-bound around our 1M 10.50 target the last few sessions. Today’s labour market data is unlikely to change that”.

“Focus is directed toward the Swedish general election on 9 September (and of course the Riksbank on 6 September), which is reflected in the options market through higher short-dated implied vols”.

“It is noteworthy that SD has dropped in a new Novus poll, although it is still a close-to-20% party, which in the end is more than enough for it to be the king maker”.