EUR/SEK: still risks of temporary spikes - UBS

FXStreet (Córdoba) - The UBS analyst team notes that given the recent strong easing surprise by the Riksbank, there are still risks of temporary spikes higher in the coming weeks before EUR/SEK should come down to 9.10 in three months.

Key Quotes

“The rate for registered unemployment in Sweden came down from 7.7% to 7.6% in June, while job vacancies continue to rise strongly. This indicates economic growth is above long-term trend, supporting our positive long-term stance on the SEK”.

“The EUR/SEK came down to 9.25. However, given the recent strong easing surprise by the Riksbank, we think there are still risks of temporary spikes higher in the coming weeks before EUR/SEK should come down to 9.10 in three months”.