Sell EUR/SEK at 9.60 - Natixis

Nordine NAAM, Research Analyst at Natixis, notes that the Swedish krona continued to correct against the euro given the Riksbank’s caution over the inflation outlook, as consumer prices picked up for four months before going back on the retreat.

Key Quotes

“The central bank is fearful an excessively strong krona will have disinflationary effects. Several members of the Riksbank have said as much this past week. In the short term, the EUR/SEK could clamber towards 9.60, at which level we would be sellers of the pair to play a correction towards 9.30 as the krona gradually recovers.”