SEK: scope for extra gains – Danske Bank

Chief Analyst at Danske Bank Arne Rasmussen noted the bullish prospects for the Swedish Krona ahead of the Riksbank meeting next week.

Key Quotes

“In term of the SEK, focus is turning to the Riksbank meeting on 15th February”.

“In December, the board decided to keep an easing bias for 2017 of 6bp. However, voices were heard saying that the number could give an impression of a higher probability of a rate cut than is actually the case”.

“This time around, we would assume that the bias is reduced (to 3bp) or possibly even removed. Especially in the case of the latter, the market could use that as an excuse to add to short EUR/SEK”.