SEK: Election proximity starting to weigh - ING

Analysts at ING think that political risk could be starting to play a role in the SEK as investors have started factoring in the upcoming general election on 9 September.

Key Quotes

“Polls suggest the likely outcome is a hung parliament and record support for the far-right, anti-EU Sweden Democrats.”

“A messy election and potentially lengthy negotiations to form a new government mean political uncertainty and could easily become another negative factor for SEK over the coming months.”

“Swedish data in the week ahead will be Retail Sales (Tuesday) and the Economic Tendency Survey (Thursday). The latter has been stabilising not far from cycle highs, but the fear of escalating US sanctions, slowing trade growth and the political risk premium all look set to keep the SEK on the back foot.”