SEK looks to the Riksbank today – Danske Bank

Valtteri Ahti, Chief Strategist at Danske Bank noted the Swedish Krona should remain under pressure in light of the imminent Riksbank meeting.

Key Quotes

“The Riksbank meeting will take centre stage today, and as described above, we expect the Riksbank to hint at a lower probability of a rate hike this year”.

“Since this is to some extent what the market is pricing, we shouldn’t expect a sharp reaction in EUR/SEK: the cross should move higher but 10.70 should not be in danger”.

“If the Riksbank sticks to its current path, it would be received as a hawkish signal, which should have a more significant impact on EUR/SEK: a dip toward 10.40, where there is key resistance, could be on the cards”.