13 Feb 2015
EUR/SEK could re-visit the boundaries of 9.7300 – Danske Bank
FXStreet (Edinburgh) - In light of the recent announcements by the Riksbank, Chief Analyst at Danske Bank Lars Christensen believes the cross could head higher to recent highs near 9.7300.
Key Quotes
“With the Riksbank prepared to quickly make monetary policy more expansionary, even in-between the ordinary policy meetings, we now arguably have to price a ‘Riksbank risk premium’ that is set to weigh on the SEK near term”.
“Indeed, we cannot rule out that weak CPI and/or inflation expectations outcomes ahead will lead the Riksbank to ease further”.
“Even though we foresee another round of EUR/USD weakness during spring time when the ECB starts buying, EUR/SEK upside remains in our view; the next target for EUR/SEK is the high from 16 December at 9.7281”.
Key Quotes
“With the Riksbank prepared to quickly make monetary policy more expansionary, even in-between the ordinary policy meetings, we now arguably have to price a ‘Riksbank risk premium’ that is set to weigh on the SEK near term”.
“Indeed, we cannot rule out that weak CPI and/or inflation expectations outcomes ahead will lead the Riksbank to ease further”.
“Even though we foresee another round of EUR/USD weakness during spring time when the ECB starts buying, EUR/SEK upside remains in our view; the next target for EUR/SEK is the high from 16 December at 9.7281”.