EUR/SEK still rangebound between 9.41-9.60 – Danske Bank

Allan von Mehren, Chief Analyst at Danske Bank, sees EUR/SEK keeping the sideline theme between 9.41 and 9.60 for the time being.

Key Quotes

“The Riksbank delivered a dovish policy response despite upping its GDP and inflation forecasts”.

“Hence, the decision and market response, which pushed EUR/SEK 4-5 figures higher, played out more or less as we had expected when we argued that the central bank would take a cautious stance and try to mitigate any further tightening of monetary conditions”.

“Stefan Ingves claims that he is happily behind the curve in terms of monetary policy. On balance, we still look for EUR/SEK to remain range-bound within the range of 9.41-9.60 in the near term. Next week focus will shift to GDP Q2 revisions and August inflation data”.