EUR/SEK seen sidelined – Danske Bank

Analyst at Danske Bank Aila Mihr expects the cross to extend the sideline theme in the next months.

Key Quotes

“Yesterday’s inflation print in Sweden beat market consensus as we had expected”.

“We think the fairly moderate drop in EUR/SEK made sense as the yearly core measures are likely to have peaked and given we do not pencil in any Riksbank hike before 2019 at the earliest”.

“This is also the reason for our hesitation to sell the cross despite sound fundamentals as we see a case for lower short-end rates. For now, we stay sidelined in EUR/SEK”.