Upside risks in the near term for USD/SEK and EUR/SEK

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Upside risks in the near term for USD/SEK and EUR/SEK
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The Swedish Krona has been a big outlier since the start of the week. Economists at ING analyze SEK’s outlook. Riksbank propping Krona? We saw two sha

The Swedish Krona has been a big outlier since the start of the week. Economists at ING analyze SEK’sWe saw two sharp drops in USD/SEK and EUR/SEK in the past two sessions shortly after 09:00 GMT in Monday’s and Tuesday’s sessions. We’ll be on the lookout today for a similar move around that time today, as that may be a signal that the Riksbank is conducting its daily sales operations around that morning timeslot.

We still point at some upside risks in the near term for USD/SEK and EUR/SEK, especially once markets adjust to the Riksbank being present in the FX market, although now there is definitely value in holding SEK against other high beta pro-cyclical currencies like NOK.Information on these pages contains forward-looking statements that involve risks and uncertainties.

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