Jakob Christensen, Chief Analyst at Danske Bank, assessed the prospects for the Swedish Krona in light of the upcoming Riksbank meeting.
“For the SEK, the week is absent of any economic releases of significance. Hence, the currency may trade on the general risk sentiment, which has recently provided some momentum to SEK”.
“The market may also start to look forward increasingly to the Riksbank meeting on 15 February, where the current easing bias may be reduced as promoted by the three December policy committee dissenters”.
“Recent data, not least inflation expectations, may convince some of the more proactive members to accept less biased policy signals. The market could use that as an excuse to add to short EURSEK”.
“The ‘RB is done’ story is key as to why we are strategically bullish on the SEK, but we have also highlighted that, in our view, market pricing on a one-three year basis on how rapidly it will hike is getting somewhat stretched. Hence, we are reluctant to go short here and prefer to await a better entry level”.
You may be interested
Buy Bitcoins in Europe With Bitmoney.euBrian Evans - Aug 10, 2017
Want to purchase bitcoins? Look no further! Buying bitcoins has never been easier, with Bitmoney.eu. Bitmoney.eu makes the process of buying Bitcoin easy and efficient, saving customers…
Goldman Sachs: ‘Real Dollars Are at Work’ in Cryptocurrency MarketsBrian Evans - Aug 10, 2017
Goldman Sachs has published a question-and-answer report focused on cryptocurrencies in which it suggests that clients should be keeping a closer eye on the market. According to…
Bitcoin’s Present Bubble Might Actually be the Beginning of Mainstream AdoptionBrian Evans - Aug 09, 2017
Bitcoin’s enthusiasts are torn between whether to celebrate Bitcoin’s arrival in the foothills of mass adoption, or to lament the upcoming burst that always happens with asset…