EUR/SEK: Targeting 10.60 in 3 months, 10.80 in 6 months – Danske Bank

The Riksbank decided to keep its policy rate unchanged at 0%. Strategists at Danske Bank analyze the reaction of the EUR/SEK and the outlook for the pair in the coming months.

Key quotes

“Improved global risk appetite rather than positioning for a hawkish Riksbank is the main reason why EUR/SEK has headed lower ahead of today’s rate decision.” 

“For EUR/SEK the decision was completely undramatic and the cross barely moved.” 

“EUR/SEK trades close to our mid-February 10.50 target and we stay neutral for now.”

“We still think the market may want to discount a higher probability for a rate cut going forward and therefore we see EUR/SEK as a buy on dips, targeting 10.60 in 3M and 10.80 in 6M.”