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5 Feb 2015
EUR/SEK points lower in the longer-term – Danske Bank
FXStreet (Edinburgh) - Chief Analyst at Danske Bank Allan von Mehren expects the cross to grind lower following the next Riksbank meeting next week.
Key Quotes
“The SEK continues to weaken against the EUR and other trading-partner currencies”.
“This is expected ahead of the Riksbank decision on 12 February. We expect the central bank to lower the expected rate path and to be very dovish in its analysis of inflation”.
“However, we still believe that it is most likely that the Riksbank will refrain from cutting interest rates to negative”.
“Hence, EUR/SEK should move higher into the Riksbank meeting; consolidate right after and then move lower. This is the same pattern we have seen around recent Riksbank meetings and we so no reason why it should be different this time”.
Key Quotes
“The SEK continues to weaken against the EUR and other trading-partner currencies”.
“This is expected ahead of the Riksbank decision on 12 February. We expect the central bank to lower the expected rate path and to be very dovish in its analysis of inflation”.
“However, we still believe that it is most likely that the Riksbank will refrain from cutting interest rates to negative”.
“Hence, EUR/SEK should move higher into the Riksbank meeting; consolidate right after and then move lower. This is the same pattern we have seen around recent Riksbank meetings and we so no reason why it should be different this time”.