SEK remains vulnerable – Danske Bank

Kristoffer Lomholt, Senior Analyst at Danske Bank, noted the bearish prospects for the Krona.

Key Quotes

“Last week’s Riksbank meeting was key for providing support for our case that EUR/SEK remains a buy on dips. Maybe the Riksbank’s lack of concern over SEK weakness is part of the reason why EUR/SEK moved higher despite the one-quarter postponement being widely expected .As a result, EUR/SEK is now close to our 10.50 3M target”.

“Another reason could be that the market, as do we, assumes that further postponements will come. We see no reason based on what came out from the Riksbank last week to alter our bearish view on the krona, though technically a temporary correction lower could be on the cards”.