EUR/SEK risks further decline – Danske Bank

Sverre Holbek, Senior Analyst at Danske Bank, believes the cross could head lower in the next periods.

Key Quotes

“The news out on Friday from the wage negotiations in Sweden on Thursday last week has provided a temporary floor in EUR/SEK”.

“This is in line with our view that the wage settlement will prove too low for the Riksbank and it will be forced to do more, most likely by enacting more QE in April”.

“EUR/SEK is caught in a 9.10-9.50 range in our view, albeit risks are skewed to the downside”.