26 Aug 2015
EUR/SEK points to 9.00 in 12-month – Danske Bank
FXStreet (Edinburgh) - Senior Analyst at Danske Bank Signe Roed-Frederiksen suggested the cross could hit the 9.00 mark in a year’s time.
Key Quotes
“In Sweden the NIER’s inflation forecast is an important driver for expectations on additional Riksbank easing”.
“Our base case remains that the Riksbank will stay on hold next week, due to the higher-than-expected July CPI reading and the weak SEK”.
“However, we acknowledge that the risk has increased that the Riksbank will cut rates on the back of global turmoil and the plunge in energy prices that further challenges the Riksbank's aggressive inflation forecast”.
“A Riksbank rate cut would probably send EUR/SEK higher as the market is not priced for Riksbank easing”.
“However, we think that any EUR/SEK bounce will be temporary. We maintain our medium-term bullish view on the SEK forecasting a gradual move lower in EUR/SEK towards 9.40 in 1M and 3M, 9.30 in 6M and 9.00 in 12M”.
Key Quotes
“In Sweden the NIER’s inflation forecast is an important driver for expectations on additional Riksbank easing”.
“Our base case remains that the Riksbank will stay on hold next week, due to the higher-than-expected July CPI reading and the weak SEK”.
“However, we acknowledge that the risk has increased that the Riksbank will cut rates on the back of global turmoil and the plunge in energy prices that further challenges the Riksbank's aggressive inflation forecast”.
“A Riksbank rate cut would probably send EUR/SEK higher as the market is not priced for Riksbank easing”.
“However, we think that any EUR/SEK bounce will be temporary. We maintain our medium-term bullish view on the SEK forecasting a gradual move lower in EUR/SEK towards 9.40 in 1M and 3M, 9.30 in 6M and 9.00 in 12M”.