EUR/SEK seen between 9.75-10.00 near term – Danske Bank

Chief Analyst at Danske Bank Allan von Mehren believes EUR/SEK could extend its consolidative theme between 9.75 and 10.00 in the near-term.

Key Quotes

“In the Scandi markets, we are in for a relatively calm week following central bank meetings in Sweden and Norway last week”.

“EUR/SEK traded in a volatile and choppy pattern on Friday after the sharp move higher on Thursday following the Riksbank’s decision. As highlighted earlier, we see the Riksbank’s changes to its repo forecasts as significant, particularly that it expects that the rates could be cut marginally again next year”.

“We expect EUR/SEK to consolidate in a relative wide range of 9.75-10.00 near term”.

“With little data news after a heavy release week last week, focus for the Norwegian kroner will be on the OPEC/non-OPEC deal and whether the parties can flesh out a strategy to achieve the targeted production cuts. So far, there has not been much agreement, which will weigh on oil prices and is likely to continue to send the EUR/NOK higher”.