EUR/SEK can stabilise around the current 11.70-11.80 levels – ING

EUR/SEK has been volatile in narrow ranges after the Riksbank’s announcement today. Economists at ING analyze the pair’s outlook.

Sustained recovery in the undervalued Krona unlikely to emerge until much later in the year

We suspect that EUR/SEK can stabilise around the current 11.70-11.80 levels. 

However, with the real estate market proving to be Sweden’s Achilles heel, we doubt that a sustained recovery in the undervalued Krona will emerge until much later in the year when there are clearer signs of improvement in global inflation trends. Until that point, domestic risks in Sweden will continue to see the SEK trade on a fragile footing.