EUR/SEK: Stay cautious – Danske Bank

In the Scandies, EUR/SEK remains higher than before the Riksbank meeting as the cross fluctuated between 9.94 and 10.00 with all hopes that the Riksbank would be the trigger for a major rally in the SEK seeming to have gone up in smoke – for now, explains Senior Analyst, Kristoffer Kjær Lomholt at Danske Bank.

Key Quotes

“Maybe one should be cautious about reading too much into the ups and downs in EUR/SEK as we head towards Christmas and year-end. However, there are a couple of data releases that could prompt some price action, with today’s retail sales expected to come in soft, which could return the cross towards 10.00 again.”

“In terms of EUR/NOK, today’s labour market report in Norway should in isolation weigh on the cross. Meanwhile, year-end liquidity has over the past week clearly illustrated the NOK’s vulnerability and we doubt today’s data release will have much impact on the NOK. We still recommend positioning for a stronger NOK looking into 2018.”