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13 Mar 2015
EUR/SEK bullish in the near term, bearish longer-term – Danske Bank
FXStreet (Edinburgh) - In the view of Morten Helt, Senior Analyst at Danske Bank, the Swedish krona could appreciate in the longer term, pushing the cross lower.
Key Quotes
“For now EUR/SEK remains caught between the ECB’s QE pushing the cross downwards and a possible Riksbank reaction forming a near-term floor”.
“We still see risks tilted towards more Riksbank action. The market is not priced for this and thus in the near term risks are probably skewed to the upside in EUR/SEK”.
“Fundamentally, we still expect the SEK to appreciate against the EUR on a six to 12 months’ horizon targeting the cross at 8.90 in 12M”.
Key Quotes
“For now EUR/SEK remains caught between the ECB’s QE pushing the cross downwards and a possible Riksbank reaction forming a near-term floor”.
“We still see risks tilted towards more Riksbank action. The market is not priced for this and thus in the near term risks are probably skewed to the upside in EUR/SEK”.
“Fundamentally, we still expect the SEK to appreciate against the EUR on a six to 12 months’ horizon targeting the cross at 8.90 in 12M”.