EUR/SEK keeps pushing higher – Danske Bank

Senior Analyst at Danske Bank Pernille Henneberg assessed the recent price action of the Swedish Krona.

Key Quotes

“In the Scandies, EURSEK is creeping higher by the day, although ever so slowly. We cannot fully explain the move higher by relative yields, which suggest the pair should move down towards 9.50”.

“Swedish macro outcomes this week have been on the weak side though. Moreover, we think that there may have been SEK-negative rebalancing flows at the end of the month”.

“Yesterday, the mediators came with a final offer that the wage and the negotiating parts are expected to respond to today, before the current contracts run out (midnight). The initial offer at 5.9% over three years was rejected by the industrial union but accepted by employers. Even a slightly higher deal would remain challenging for the Riksbank unless wage drift suddenly surges”.