18 Feb 2015
EUR/SEK points north in the medium term – Danske Bank
FXStreet (Edinburgh) - Stefan Mellin, Senior Analyst at Danske Bank, expects the cross to head higher in the upcoming months.
Key Quotes
“The Riksbank’s ambitions to fight any disinflationary tendencies should not be underestimated”.
“We therefore see mainly upside risks in EUR/SEK over the coming months, with the focus directed toward inflation and inflation expectations – pivotal data that could trigger unscheduled action by the Riksbank”.
“For the long-term player the SEK appears to be a ‘screaming buy’ and we continue to think that valuation issues will put a cap on the upside”.
“But risk-reward is not great at this point of time. That said, in 12M we do see appreciation potential in the SEK”.
Key Quotes
“The Riksbank’s ambitions to fight any disinflationary tendencies should not be underestimated”.
“We therefore see mainly upside risks in EUR/SEK over the coming months, with the focus directed toward inflation and inflation expectations – pivotal data that could trigger unscheduled action by the Riksbank”.
“For the long-term player the SEK appears to be a ‘screaming buy’ and we continue to think that valuation issues will put a cap on the upside”.
“But risk-reward is not great at this point of time. That said, in 12M we do see appreciation potential in the SEK”.