EUR/SEK attention shifted to 9.8000 – Danske Bank

Chief Analyst at Danske Bank Arne Rasmussen signalled the significance of the 9.800 handle in the recent price action around the Swedish Krona.

Key Quotes

“In Sweden, it is noteworthy that despite the disappointing GDP print (2.2% yoy vs consensus of 2.9%) there has been no follow through on the initial spike higher in EUR/SEK”.

“This might suggest that the very sour Riksbank-induced SEK sentiment that we have seen is getting less sour”.

“Meanwhile, we keep a close eye on the 9.80 peaks from 19 and 2 May. While growth has geared down in recent quarters and is now more in line with peers, we argue that the negative growth momentum – which matters more for the markets than the levels - is in the past and we maintain a rather constructive view on the growth outlook where consumption is moderating and exports are becoming more important”.