Forex Forums  

Go Back   Forex Forums > Forex Forums > Forex Training

LinkBack Thread Tools Display Modes
  #1 (permalink)  
Old 05-22-2018, 03:01 AM
Junior Member
Join Date: Feb 2018
Posts: 24
Default SEK Revival Set To Be Temporary

EUR/SEK. Our bearish SEK view has two pillars: first, the inflation outlook makes it hard for the Riksbank to raise rates this year; second, a sharp slowdown in growth due to the housing market. That said, we argued in FX Strategy: EUR/SEK 6 pause in ascending trend channel , 4 May, that EUR/SEK looked overbought and was prone for a correction. Since then, we have seen the sharpest krona recovery since 2015. There is a silly circular reference from a weak SEK to higher inflation to higher rates and then back to a stronger SEK that sort of caps the upside in EUR/SEK. On the other hand, this circular reference is symmetric, where too much SEK appreciation will not be welcomed by the Riksbank given subdued underlying inflation while a slowdown in growth remains a headwind for the SEK. We set our1M forecast to 10.20 (10.40), 3M to 10.30 (10.50), 6M to 10.50 (unchanged) and 12M to 10.20 (unchanged).

You can see more about conversor kr currency
Reply With Quote

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

All times are GMT. The time now is 08:05 AM.

Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Search Engine Friendly URLs by vBSEO 3.1.0 ©2007, Crawlability, Inc.