7 Aug 2015
EUR/SEK expected to edge higher – Danske Bank
FXStreet (Edinburgh) - Morten Helt, Senior Analyst at Danske Bank, sees the krona depreciating further in the upcoming months.
Key Quotes
“EUR/SEK has edged higher and the clean break of 9.50 triggered a further squeeze on Thursday”.
“The market is gradually pricing in more easing from the Riksbank meeting on 3 September. We estimate that the market is pricing in slightly more than a 5bp rate cut for the September meeting and an accumulated 8bp for the December meeting”.
“We still forecast a 10bp rate cut by the Riksbank in December but the risks of it cutting in September will increase if we get a low July inflation print next week, which we expect”.
“After the break of 9.50 we could see a further squeeze higher ahead of the high from 16 December 2014 at 9.7281”.
Key Quotes
“EUR/SEK has edged higher and the clean break of 9.50 triggered a further squeeze on Thursday”.
“The market is gradually pricing in more easing from the Riksbank meeting on 3 September. We estimate that the market is pricing in slightly more than a 5bp rate cut for the September meeting and an accumulated 8bp for the December meeting”.
“We still forecast a 10bp rate cut by the Riksbank in December but the risks of it cutting in September will increase if we get a low July inflation print next week, which we expect”.
“After the break of 9.50 we could see a further squeeze higher ahead of the high from 16 December 2014 at 9.7281”.