EUR/SEK expected to grind lower in the next months – Danske Bank

Senior Analyst at Danske Bank Sverre Holbek sees the Swedish krona gathering further traction in the next months.

Key Quotes

“In the Scandies, we have seen some of the SEK strength materialising over the past few days that we have been calling for”.

“Indeed, we think the ‘summer lull’ has been an important factor in the SEK’s very poor July performance, as the natural SEK buyers have been absent (i.e. on holiday)”.

“Importantly, we think this has led to some pent-up SEK demand and we expect commercial interests from exporters and rebalancing needs stemming from financial institutions (which need to buy SEK, as foreign assets have increased in value) to send EUR/SEK lower over the coming month”.