15 Mar 2016
EUR/SEK further rangebound lies ahead – Danske Bank
Senior Analyst at Danske Bank Morten Helt still sees the cross keeping the consolidative pattern for the time being.
Key Quotes
“We continue to see EUR/SEK range bound in the coming months but we have become slightly more bearish with respect to the near term outlook after Riksbank member Skingsley last week reiterated her standpoint of greater tolerance towards SEK appreciation in excess of its own forecast”.
“Indeed, we do not know whether her view is shared by Ingves and Jochnick but it is possible that the pain threshold has been lowered somewhat”.
“To the extent that the Riksbank is ok with a stronger SEK, we think that the fair range for EUR/SEK has shifted down to 9.15-9.40”.
Key Quotes
“We continue to see EUR/SEK range bound in the coming months but we have become slightly more bearish with respect to the near term outlook after Riksbank member Skingsley last week reiterated her standpoint of greater tolerance towards SEK appreciation in excess of its own forecast”.
“Indeed, we do not know whether her view is shared by Ingves and Jochnick but it is possible that the pain threshold has been lowered somewhat”.
“To the extent that the Riksbank is ok with a stronger SEK, we think that the fair range for EUR/SEK has shifted down to 9.15-9.40”.