EUR/SEK still stuck within 9.70 and 9.80 – Danske Bank

Kristoffer Lomholt, Senior Analyst at Danske Bank, expects the cross to remain sidelined around 9.70/9.80.

Key Quotes

“In the Scandies, EUR/SEK remains stuck within the 9.70-9.80 range while 3M implied volatility is testing new lows”.

“The topside of the range seems to be the most vulnerable, although recent price action may suggest that the uptrend is losing some steam”.

“This week is short in Sweden as it is a half day today and closed tomorrow. Wednesday’s April production data (industry and services) could prompt a break of range”.

“The cyclical picture suggests that EUR/SEK has gone too far but as long as the Riksbank sticks to its dovish stance the SEK will find it hard to make any meaningful rebound. On Thursday, SEK investors should monitor a speech to be given by Cecilia Skingsley and of course the ECB”.