EUR/SEK to enjoy further gains towards the 11 level – Danske Bank

Economists at Danske Bank see further upside on the EUR/SEK. They expect the pair to advance nicely towards the 11 level.

Gradual SEK weakening set to continue

“We have a negative view on the outlook for the SEK and would stress both short and long-term headwinds for the currency.” 

“A short-term risk is that fixed income markets seem to be pricing too many rate hikes from the Riksbank. A repricing of the Riksbank, together with weaker global GDP growth and volatile asset prices, would pose significant headwinds to the cyclical SEK.”

“Forecast: 10.50 (1M), 10.60 (3M), 10.80 (6M), 11.00 (12M).”