27 Jan 2015
Riksbank to stay put in February, EUR/SEK lower? – Danske Bank
FXStreet (Edinburgh) - Morten Helt, Senior Analyst at Danske Bank, sees the Riksbank keeping its monetary policy stance in its next meeting in February.
Key Quotes
“Focus in the FX market will now turn to possible reactions from other central banks to the ECB move last week, which arguably re-ignited the global currency war”.
“In this respect, the Riksbank might take centre stage ahead of the February meeting: we think the Riksbank will opt to signal zero rates for an extended period of time rather than invoking other unconventional measures”.
“This should eventually support a downtrend in EUR/SEK but the risk of further Riksbank easing should hold the pair back near term. We still target 9.30 in 3M”.
Key Quotes
“Focus in the FX market will now turn to possible reactions from other central banks to the ECB move last week, which arguably re-ignited the global currency war”.
“In this respect, the Riksbank might take centre stage ahead of the February meeting: we think the Riksbank will opt to signal zero rates for an extended period of time rather than invoking other unconventional measures”.
“This should eventually support a downtrend in EUR/SEK but the risk of further Riksbank easing should hold the pair back near term. We still target 9.30 in 3M”.