11 Aug 2015
EUR/SEK still seen higher – Danske Bank
FXStreet (Edinburgh) - According to Arne Rasmussen, Chief Analyst at Danske Bank, the cross is expected to edge higher in response to further monetary easing by the Riksbank.
Key Quotes
“EUR/SEK came off on Monday following the sharp rise last week”.
“However, we expect Swedish July CPIF due on Thursday to come out at 0.4% y/y and -0.6% m/m, substantially below the Riksbank’s forecast at 0.7% y/y and -0.3% m/m and Bloomberg consensus expectations at 0.6% y/y and -0.2% m/m”.
“The market is currently pricing in a 5bps cut by the Riksbank for September and an additional 4bps for December”.
“We expect EUR/SEK to bounce around Thursday’s data as the market prices in more easing from the Riksbank, but gains are likely to be protected ahead of the December 2014 high at 9.7281”.
Key Quotes
“EUR/SEK came off on Monday following the sharp rise last week”.
“However, we expect Swedish July CPIF due on Thursday to come out at 0.4% y/y and -0.6% m/m, substantially below the Riksbank’s forecast at 0.7% y/y and -0.3% m/m and Bloomberg consensus expectations at 0.6% y/y and -0.2% m/m”.
“The market is currently pricing in a 5bps cut by the Riksbank for September and an additional 4bps for December”.
“We expect EUR/SEK to bounce around Thursday’s data as the market prices in more easing from the Riksbank, but gains are likely to be protected ahead of the December 2014 high at 9.7281”.