EUR/SEK trades above the 11.40 mark. Economists at Danske Bank analyze the pair’s outlook.
Relief-boost to SEK will not be sustained
Near-term, the yearly PPM money is a potential, yet transitory, flow factor for the SEK. Moreover, in the near term, we could see further SEK strength, contingent on for instance risk sentiment, seasonality and short-term valuation.
With cyclical (macro and monetary policy outlook) headwinds still in place for the coming 6-12M we remain medium-term bearish on the SEK.
Forecast: 11.40 (1M), 11.50 (3M), 11.80 (6M), 11.80 (12M)