EUR/SEK may suffer more falls towards 10.05 by year-end – ING

EUR/SEK has retracted to the 10.20 region after peaking in midAugust, largely thanks to the general recovery in risk sentiment. Another grind lower towards the 10.05 mark by year-end is on the cards, according to economists at ING.

Riksbank still unlikely to turn into a SEK positive

“SEK is struggling to emerge as an outperformer among other activity currencies, mostly due to its unattractive carry. This is unlikely to change soon as the Riksbank is still facing a very subdued inflation profile and should therefore stick to its very dovish tone for the foreseeable future.”

“Given SEK’s exposure to the broad European sentiment, the ability of the region to weather the recent covid wave without hampering the recovery will be an important factor for the krona to stay bid. A move to 10.05 by year-end is still possible.”