Euro To Swedish Krona Exchange Rate Tipped To Head Even Higher

One of the strongest uptrends in G10 FX pairs witnessed this year was the performance of the EUR/SEK exchange rate, which has seen tremendous moves as the Swedish Krona has been hit particularly hard by worries over its housing market and global conditions for trade, as small open economies stand to be hit the most by a trade war.

Analysts at Danske Bank released a report on Tuesday which has indicated that despite strong demand for the SEK from clients, they see the pair headed higher still over the next few months.

Key Quotes

“In our quarterly FX survey that was published yesterday, our clients have not given up on a recovery for the SEK, though they expect it to stay above 10.00 in 3M.

"Consensus expects a 1.5% drop in 3M down to 10.03.

"The rally in EUR/SEK over the past months rhymes with the fact that clients have become more doubtful about a hike this year and re-pricing of the Riksbank.

"However, they expect the SEK to strengthen in a no-hike scenario and despite an arguably negative outlook for the housing market.

"Danske Bank sees EUR/SEK at 10.30 in 3M.”