EUR/SEK seen within ranges, Riksbank steady – Danske Bank

The Riksbank is expected to keep its monetary status quo unchanged at this week’s meeting, while the cross is seen within familiar ranges, suggested Mikael Milhoj, Senior Analyst at Danske Bank.

Key Quotes

“In the Scandies, both EUR/NOK and EUR/SEK ended last week on a relatively quiet note. In Sweden, we do not expect any major changes from the Riksbank later this week and hence, we still look for EUR/SEK to trade within the 9.40-9.65 range in the coming months”.

“In Norway, the August housing prices due out on Tuesday will attract some attention. Prices have fallen for three successive months and while we still believe the drop in prices to be a correction, rather than a crash, further deterioration in the housing market could prompt speculation of a rate cut from Norges Bank and thus send the NOK lower. However, this is not our main scenario, and we are still bullish NOK over the medium term, and we still would consider selling EUR/NOK on rallies towards 9.40”.