FXStreet (Edinburgh) – In the view of BofA Merrill Lynch Global Research, the cross could be headed towards the 9.10 area within a year’s time.
Key Quotes
“We maintain our EUR/SEK forecasts unchanged at 9.30 for year-end and 9.10 for end- 2016, with some downside risks to the pair”.
“The Swedish economy has been performing well, and we have long argued that the Riksbank will ultimately have less scope to ease than the ECB”.
“Riksbank stimulus is having the intended effect, and it will be prudent to reduce the intensity as we progress through 2016, though we would not count out a Riksbank response just yet with the ECB reloading its policy weapons”.
“SEK remains an important factor for the Riksbank so sustained sharp appreciation increases the odds of a policy response”.
(Market News Provided by FXstreet)