EUR/SEK seen between 9.45 and 9.70 – Danske Bank

Chief Analyst at Danske Bank Pernille Henneberg noted the cross is expected to stay within 9.45 and 9.70 in the next months.

Key Quotes

“Yesterday’s high inflation reading sent EUR/SEK instantaneously lower towards our 1M 9.60 target, but there is still a gap down to the implied fair value based on short-term rates, which is around 9.50”.

“That is, the previous rally in EUR/SEK could not be explained fully by repricing in the money market. Hence, we have a cautious bias to the downside. However, it is based on the view that EUR/SEK got a little bit too expensive and that the pair is edging lower while remaining in the range of 9.45-9.70 over the next few months”.