EUR/SEK: UNlikely to fall below 10.30 on a sustained basis this year – Commerzbank

Economists at Commerzbank believe that the Swedish krona’s upside potential is exhausted. Therefore, the EUR/SEK pair is set to hold above the 10.30 mark.

Limited upside potential for the SEK

“Compared to the ECB, the Riksbank remains more active in the fight against inflation, which should in principle give the SEK an advantage over the euro. However, the SEK can also always come under pressure during periods of heightened uncertainty in the market.”

“Since little more monetary tightening is likely to be priced in for this year, the SEK's upside potential is largely exhausted, which is why I do not see EUR/SEK falling below 10.30 on a sustained basis this year.”