EUR/SEK could drop to 9.10 by year-end – BAML

FXStreet (Edinburgh) – The cross could grind lower towards the 9.10 region by the end of the current year, suggested analysts at BAML.

Key Quotes

“We expect the SEK path to continue to be a tug of war between positive developments in the Swedish economy and Riksbank and ECB policies”.

“Despite low inflation, the Swedish economy has been performing well and should benefit from a pick-up in the Euro area, and some weakness in the data of late does not change the overall trend”.

“However, the Riksbank will maintain pressure on SEK, and EUR/SEK may find itself in a range of 9.20–9.40 over the shorter term”.

“We expect EUR/SEK at 9.10 by the end of the year”.

“The main risks include weaker growth or negative inflation surprises, triggering a more aggressive policy response. On the flip side, adverse developments in Greece could strengthen SEK against the EUR more than we anticipate”.

The cross could grind lower towards the 9.10 region by the end of the current year, suggested analysts at BAML…

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