EUR/SEK seen at 9.30 by year-end – BAML

FXStreet (Edinburgh) - The Swedish krona is expected to pick up pace towards the end of the year, according to analysts at BAML.

Key Quotes

“We mark our forecasts to market, but maintain a path showing gradual SEK strength vs EUR, though a relentlessly dovish Riksbank will keep pressure on the currency in the near term”.

“We target EUR/SEK at 9.40 in Q3 and 9.30 by the end of the year, with upside risks to the pair if the renewed weakness in oil prices dampens inflation prompting further easing”.

“Nevertheless, we continue to believe that the ECB ultimately has more scope to ease and furthermore that the Swedish economy should be boosted by a pick-up in the Euro area”.

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