EUR/SEK still a buy on dips – Danske Bank

Allan von Mehren, Chief Analyst at Danske Bank sees the Riksbank refraining from moving on rates this week while suggested buying  the cross on occasional dips.

Key Quotes

“In terms of the SEK, we remain bearish after last week’s July inflation numbers, which above all showed that core inflation at 1.3% undershot the Riksbank’s forecast”.

“Again. We are comfortable with our call of no hikes this year and still see EUR/SEK as a buy on dips”.

“The SEK is not only about monetary policy and macro though, but also about poor global risk sentiment and a messy Swedish general election. In our view, a cocktail for heightened FX volatility and a headwind for the SEK”.