2 Jul 2014
EUR/SEK should fall to 8.60 over six months - UBS
FXStreet (Córdoba) - The UBS analyst team commented that strong Swedish PMI supports solid growth view and thus the Riskbank should eventually become less concerned about low inflation, lifting the SEK.
Key Quotes
“The Swedish manufacturing PMI rose from 54.1 to 54.8 in June, which supports our view of ongoing solid growth. The steadily improving employment sub-indicator also hints at sustainable economic strength”.
“Furthermore, price pressures seem to rise since the low point in April, pointing towards stabilizing inflation ahead”.
“We thus stick to our view that the Riksbank should eventually become less concerned about low inflation later this year. As such, EUR/SEK should fall to 8.60 over six months”.
Key Quotes
“The Swedish manufacturing PMI rose from 54.1 to 54.8 in June, which supports our view of ongoing solid growth. The steadily improving employment sub-indicator also hints at sustainable economic strength”.
“Furthermore, price pressures seem to rise since the low point in April, pointing towards stabilizing inflation ahead”.
“We thus stick to our view that the Riksbank should eventually become less concerned about low inflation later this year. As such, EUR/SEK should fall to 8.60 over six months”.