EUR/SEK eyes 9.10 in 12-month – Danske Bank

Stefan Mellin, Senior Analyst at Danske Bank, sees the Swedish Krona appreciating further in a year’s view.

Key Quotes

“Fundamentals and valuation are extremely favourable for the krona”.

“Cyclical tailwinds have moderated, which has weighed on the SEK recently. Note however that in relative terms the growth outlook is still supportive of the downside”.

“The Riksbank will match the ECB on QE extension as a way to counter any premature SEK appreciation”.

“This is likely to keep EUR/SEK elevated for longer. We maintain our forecast profile, now at 9.40 in 1M, 9.30 in 3-6M and 9.10 in 12M”.