EUR/SEK still a ‘sell on rallies’ – Danske Bank

Chief Analyst Jens Sorensen at Danske Bank noted occasional weakness in the Swedish Krona is seen as buying opportunities.

Key Quotes

“The most important release in Sweden is the February inflation data on Tuesday. We project inflation to be slightly (at 1.9%), slightly lower than the Riksbank’s projections”.

“While this small deviation could be dismissed as noise, it is not likely to provide any support for the krona either. If the data pushes EURSEK higher, we would be ready to sell or add to short positions in EURSEK”.

“Also on Tuesday, Riksbank Governor Stefan Ingves, joined by Henry Ohlsson (QE dissenter and advocate of a higher near-term rate path) will speak ahead of the Riksdag Finance Committee, where the governor typically motivates current policy and points at all its successes”.

“On Wednesday, we are due to get Prospera's quarterly inflation expectations survey and that report is likely to be seen as good news for the SEK (and the Riksbank)”.