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21 Mar 2016
EUR/SEK rangebound ahead of further upside – Danske Bank
Senior Analyst at Danske Bank Stefan Mellin sees the cross in a sideline pattern in the next months.
Key Quotes
“We continue to see EUR/SEK being range bound for the next few months but with a downward bias”.
“We have become slightly more bearish with respect to the near-term outlook. Why? First, the ECB was less aggressive with the interest-rate/currency weapon. Second, Cecilia Skingsley communicated a higher tolerance to forecast errors. Third, fears of global/US recession have lessened. Fourth, risk sentiment has stabilised”.
“Hence, our 1M target is 9.20 (was 9.40), our 3M and 6M targets are 9.20 and 9.10, respectively, (were 9.30) and we keep 12M intact at 9.10. Fundamentals and valuation arguments suggest EUR/SEK will edge lower beyond the 12M horizon”.
Key Quotes
“We continue to see EUR/SEK being range bound for the next few months but with a downward bias”.
“We have become slightly more bearish with respect to the near-term outlook. Why? First, the ECB was less aggressive with the interest-rate/currency weapon. Second, Cecilia Skingsley communicated a higher tolerance to forecast errors. Third, fears of global/US recession have lessened. Fourth, risk sentiment has stabilised”.
“Hence, our 1M target is 9.20 (was 9.40), our 3M and 6M targets are 9.20 and 9.10, respectively, (were 9.30) and we keep 12M intact at 9.10. Fundamentals and valuation arguments suggest EUR/SEK will edge lower beyond the 12M horizon”.