1 Dec 2015
Riksbank could cut 10 bp this month – Danske Bank
FXStreet (Edinburgh) - Senior Analyst at Danske Bank Christin Tuxen sees there are chances that the Nordic central bank could lower its benchmark rates by 10 bp at its upcoming meeting.
Key Quotes
“EUR/SEK dived close to 9.20 on the strong Swedish GDP report yesterday, confirming the picture of an economy that looks increasingly healthy across the board”.
“We maintain that the Riksbank will likely react if EUR/SEK drops too quickly and due to foreign matters but we stress that the tight range that the cross used to be kept in by the Riksbank is set to gradually slip - not least if driven by Swedish fundamentals”.
“Watch out for any Riksbank comments ahead of and following the ECB meeting this week: we still project a 10bp cut from the Riksbank on 15 December which should be enough to stem a continued downtrend in EUR/SEK near term and we look for the 9.10-9.50 range to persist. That said, a break lower in EUR/SEK will be a key Scandi story for 2016”.
Key Quotes
“EUR/SEK dived close to 9.20 on the strong Swedish GDP report yesterday, confirming the picture of an economy that looks increasingly healthy across the board”.
“We maintain that the Riksbank will likely react if EUR/SEK drops too quickly and due to foreign matters but we stress that the tight range that the cross used to be kept in by the Riksbank is set to gradually slip - not least if driven by Swedish fundamentals”.
“Watch out for any Riksbank comments ahead of and following the ECB meeting this week: we still project a 10bp cut from the Riksbank on 15 December which should be enough to stem a continued downtrend in EUR/SEK near term and we look for the 9.10-9.50 range to persist. That said, a break lower in EUR/SEK will be a key Scandi story for 2016”.