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17 Jul 2015
EUR/SEK could lose ground towards 8.70 in 12-month – Goldman Sachs
FXStreet (Edinburgh) - The Swedish krona is seen gathering further traction in a year’s time, pushing the cross to the 8.70 area, according to analysts at Goldman Sachs.
Key Quotes
“The dynamics that we expected to generate SEK strength remain in place: recent data suggest an improving outlook, Sweden’s current account remains robust and, contingent on a gradual improvement in domestic inflation and global conditions, the Riksbank would likely accommodate EUR/SEK moving lower”.
“The near-term risk is the potential for the Riksbank to ease policy further, given their recent dovish bias”.
“We maintain our EUR/SEK forecast at 9.00, 8.90 and 8.70 in 3, 6 and 12 months, which we adopted on March 13”.
Key Quotes
“The dynamics that we expected to generate SEK strength remain in place: recent data suggest an improving outlook, Sweden’s current account remains robust and, contingent on a gradual improvement in domestic inflation and global conditions, the Riksbank would likely accommodate EUR/SEK moving lower”.
“The near-term risk is the potential for the Riksbank to ease policy further, given their recent dovish bias”.
“We maintain our EUR/SEK forecast at 9.00, 8.90 and 8.70 in 3, 6 and 12 months, which we adopted on March 13”.