EUR/SEK Target Reached -- Now What?‏

Published 10/03/2014, 03:09 AM
Updated 05/14/2017, 06:45 AM

Our 1-3M EUR/SEK target has been reached. The political risk premium on the krona has more or less been removed - correctly so - and macro data has been SEK supportive, as expected.

The SEK will ignore the post-election political mess as well as the Swedish National Debt Office's reduction of currency debt.

We continue to see downside potential in EUR/SEK over the medium term based on relative monetary policy, growth divergence and valuation, but we think the market will pause before 9.00 is breached. We keep our 1-3M target at 9.10 and 12M target at 8.80.

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