Further gains expected for SEK in the near term – Danske Bank

Kristoffer Lomholt, Analyst at Danske Bank, sees the Swedish Krona picking up extra pace in the next months.

Key Quotes

“EUR/SEK was also dragged lower by the rally in the NOK yesterday and EUR/SEK fell to its lowest level since mid-July despite the release of weak Swedish industrial production data”.

“Today, Swedish CPI figures will be in the spotlight. Given our call that both the CPIF and the CPIF excluding energy will print 0.2pp below the Riksbank’s forecasts, this could in isolation be bullish for EUR/SEK”.

“However, we still expect the SEK to perform in the near term driven by pent-up demand from natural SEK buyers which should help it to claw back most of its summer losses in the weeks to come”.