EUR/SEK: If SEK gains, then the Riksbank will cut – Nordea

A doubling of the QE pace has been pondered ahead of the Riksbank meeting on April 28, but a cut would be the final nail in the coffin for the otherwise relatively stable SEK, according to analysts at Nordea.

Key quotes

“The outcome space for EUR/SEK over the coming 1-2 quarters is skewed to the upside in our view.” 

“Should EUR/SEK drop 3-4% from current levels, we would expect a cut to become likely, which can be seen as a de facto floor for EUR/SEK.”

“We go long EUR/SEK with a target of 11.25 and a stop loss at 10.66 in anticipation of Krona-negative Riksbank news later this month.”