SEK expected to remain under pressure – Danske Bank

Senior Analyst at Danske Bank Morten Helt gave his views on the prospects for the Swedish Krona.

Key Quotes

“Regarding the SEK, we think it is too early to expect a strengthening of the krona”.

“We see three potential triggers for renewed strength of the currency: (1) the Riksbank, 2) stronger-than-expected macroeconomic data and (3) misalignment of the SEK getting more traction”.

“The biggest obstacle to a stronger SEK is probably the Riksbank, while we think that increasingly subdued expectations on the Swedish economy make positive surprises more likely, which may offer some tailwind to the currency, which we think is clearly in undervalued territory”.