EUR/SEK expected to edge higher – Danske Bank

Senior Analyst at Danske Bank Sverre Holbek suggested the cross could extend its upside momentum in the next months.

Key Quotes

“In the Scandies, EUR/SEK is breaking through 2016 highs and we could see a test of the 2014-15 highs in the area of 9.67-9.73”.

“In our view, nothing strange is going on in EUR/SEK – the cross is simply reacting to slowing growth expectations in the Swedish economy”.

“We expect the diversion between the Riksbank’s and our CPI inflation forecast to start to show up in the September data due out on Tuesday. This could be a trigger for a further push higher in EUR/SEK”.