2 May 2014
EUR/SEK potential upside ahead – Danske Bank
FXStreet (Edinburgh) - According to Allan von Mehren, Chief Analyst at Danske Bank, the EUR/SEK could gather further steam in the upcoming sessions.
Key Quotes
“After the move lower in EUR/SEK on Wednesday the cross has started to edge higher again”.
“Today the market will focus on the PMI numbers. Swedish PMI is already at a high level but given the positive reports from the euro-zone the indicator might in fact edge higher today, giving a bit of support to the krona”.
“However, note that we will see a huge redemption in the Swedish government bond market on Monday as the SGB1041 expires. It has an outstanding volume close to 78bn and apparently it has a high foreign ownership ratio. Hence, the SEK might face new trouble next week if the proceeds are not reinvested in Sweden”.
Key Quotes
“After the move lower in EUR/SEK on Wednesday the cross has started to edge higher again”.
“Today the market will focus on the PMI numbers. Swedish PMI is already at a high level but given the positive reports from the euro-zone the indicator might in fact edge higher today, giving a bit of support to the krona”.
“However, note that we will see a huge redemption in the Swedish government bond market on Monday as the SGB1041 expires. It has an outstanding volume close to 78bn and apparently it has a high foreign ownership ratio. Hence, the SEK might face new trouble next week if the proceeds are not reinvested in Sweden”.