13 Feb 2015
SEK to continue to weaken – Nomura
FXStreet (Barcelona) - Research Analysts at Nomura, expect the renewed dovish stance of the Riksbank to keep SEK’s upside limited, further anticipating the currency to trade weak against G10 currencies.
Key Quotes
“We revise our EUR/SEK forecast to reflect the decision announced by the Riksbank today. We see slight upside risk on EUR/SEK in the near future.”
“We see a gradual decline in EUR/SEK in H2 this year, but further policy responses by the Riksbank can weaken SEK more than we expect.”
“A policy decision on 29 April (or earlier) is important for SEK trading into H2 2015 and we will continue to monitor comments of Riksbank board members. The February meeting minutes are scheduled for release on 25 February.”
“As the Riksbank remains dovish, showing stronger commitment to achieving 2% inflation, we expect the SEK to continue to trade weakly among G10 currencies.”
“Any appreciation of SEK before meaningful pick up in inflation and inflation expectations, would encourage the Bank to add monetary stimulus. Thus, we see limited upside room for the SEK for now.”
“The renewed dovish stance of the Riksbank suggests SEK underperformance among European G10 FX is likely to continue.”
“We expect the GBP to benefit from ECB QE the most among European G10 FX, while the SEK may not benefit much.”
“We continue to recommend trading SEK from short side, especially against USD and GBP, and judging it is premature to position for EUR/SEK depreciation.”
Key Quotes
“We revise our EUR/SEK forecast to reflect the decision announced by the Riksbank today. We see slight upside risk on EUR/SEK in the near future.”
“We see a gradual decline in EUR/SEK in H2 this year, but further policy responses by the Riksbank can weaken SEK more than we expect.”
“A policy decision on 29 April (or earlier) is important for SEK trading into H2 2015 and we will continue to monitor comments of Riksbank board members. The February meeting minutes are scheduled for release on 25 February.”
“As the Riksbank remains dovish, showing stronger commitment to achieving 2% inflation, we expect the SEK to continue to trade weakly among G10 currencies.”
“Any appreciation of SEK before meaningful pick up in inflation and inflation expectations, would encourage the Bank to add monetary stimulus. Thus, we see limited upside room for the SEK for now.”
“The renewed dovish stance of the Riksbank suggests SEK underperformance among European G10 FX is likely to continue.”
“We expect the GBP to benefit from ECB QE the most among European G10 FX, while the SEK may not benefit much.”
“We continue to recommend trading SEK from short side, especially against USD and GBP, and judging it is premature to position for EUR/SEK depreciation.”