SEK appears constructive near term – Danske Bank

In view of Jens Pedersen, Senior Analyst at Danske Bank, the outlook on the Swedish currency seems positive in the near term horizon.

Key Quotes

“In Scandies, risk aversion took a firm grip on EUR/SEK yesterday as the Italian crisis escalated, and price action suggests Sweden’s AAA status is not yet a strong attraction”.

“While the Riksbank expects a stronger SEK, a euro crisis would see SEK appreciation for the wrong reasons. Our short-term models have fair value in the 9.20-30 region for what it’s worth (which is perhaps not so much right now)”.