SEK seen appreciating further – Danske Bank

Chief Analyst at Danske Bank Jens Sorensen remains bullish on the Swedish currency in the next months.

Key Quotes

“EURSEK was hit twice yesterday: first, the inflation numbers, which came out in line with our forecast but one-tenth above the Riksbank’s and second, the Riksbank Minutes, which confirmed basically the hawkish read of the December decision, with the dissenters not only voting against QE but also preferring a higher repo rate path”.

“The knee-jerk reaction was a drop to 9.50, our 1M target. We remain bullish on the krona, not least based on the reassessment of monetary policy and recommend entering or adding to short positions on any rallies in EURSEK”.