EUR/SEK expected to grind lower near term – Danske Bank

According to Analyst at Danske Bank Mathias Mogensen, the cross is seen ticking lower in the next weeks.

Key Quotes

“We expect the Riksbank to stay on hold at the upcoming meeting on 7 September”.

“We think this is likely to lead to a slightly stronger SEK. Our short-term interest model suggests that EUR/SEK at close to 9.60 is in significantly overbought territory with a fair value at 9.44. EUR/SEK is currently trading close to the upper end of its recent range with a short-term fair value substantially below spot”.

“Hence, we think that EUR/SEK will edge lower from here”.