EUR/SEK keeps the bullish stance – Danske Bank

Chief Analyst at Danske Bank Jens Sorensen keeps the constructive tone on the cross.

Key Quotes

“Martin Flodén repeated yesterday that the Riksbank maintains its current strategy, which means continuing to pursue sufficiently supportive monetary policy to bring inflation up to 2% and have it stay there”.

“His comments are dovish to our ears given the inflation misses since the previous meeting. We perceive that he is close to voting to lower the interest rate path in April”.

“We guess also that Cecilia Skingsley, who is due to speak on Monday (published), is in that camp, considering how she reasoned last time. ‘The downward revision prior to today’s meeting is of such a size that I have asked myself whether shifting the repo rate path towards postponed rate rises would be a better balanced monetary policy’.

“As such, we remain bullish on EUR/SEK”.