EUR/SEK: Krona remains vulnerable to further near-term weakness – MUFG

The Swedish Krona has re-weakened in October giving back most of the gains recorded in September. Economists at MUFG Bank analyze SEK outlook.

Krona still lacks a trigger to rebound from deeply undervalued levels

The renewed sell-off for the Krona will keep pressure on the Riksbank to raise rates further even after the ECB and Fed have paused their hiking cycles. 

The Krona still lacks a trigger to rebound from deeply undervalued levels in the near-term. 

EUR/SEK – Q4 2023 11.80 Q1 2024 11.70 Q2 2024 11.60 Q3 2024 11.40