EUR/SEK expected to correct lower – Danske Bank

Valtteri Ahti, Chief Strategist at Danske Bank, noted SEK remains oversold and could spark a correction lower in the cross.

Key Quotes

“In Scandies, we have raised our Swedish inflation forecast, which is now closer to the Riksbank (RB)”.

“As for the April numbers, due for release on Wednesday, we are one tenth below both the RB and consensus on all relevant measures, which could lend some support to EUR/SEK. That said, we now see room for a correction lower given that the cross is overbought relative to rates. We stick to our 3M 10.50 target, though”.