SEK: Weaker than economic logic would dictate – ING

'Why do you have to be so complicated' is certainly what ING’s currency analysts have been screaming when it comes to the Swedish krona in 2017.

Key Quotes

“When you look at the core macro fundamentals of the Swedish economy, there's very little to suggest that the SEK should be trading at post-crisis lows against the EUR. But a mix of technical factors in the local rates market - as well as housing-related financial stability concerns - have kept the SEK weaker than economic logic would dictate. We are looking for a one-off adjustment higher in an oversold SEK early next year - which should take EUR/SEK back to 9.50-9.60.”