EUR/SEK seen within 9.45/9.65 range – Danske Bank

Thomas Rosenlund, Analyst at Danske Bank, expects the Swedish Krona to gravitate between 9.45 and 9.65 in the net months.

Key Quotes

“The SEK also saw some support from the Fed meeting last night with the improvement in global risk sentiment. The EUR/SEK fell from 9.55 to 9.52 following the Fed rate announcement”.

“However, although inflation expectations have remained relatively constant, wage growth expectations remain far below the Riksbank’s assumption, undermining in our view the Riksbank’s optimistic inflation forecast”.

“On a separate note, we think that CPIF inflation, which printed 2.0% in February, will drop substantially next month. When that comes in play, it could weigh on the krona. We see EUR/SEK trading within the broader 9.45-9.65 range”.