Forex Flash: EUR/SEK sell on weaker krona – Danske Bank
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EUR/SEK
FXstreet.com (Barcelona) - The Swedish krona is accelerating its depreciation against the euro on Thursday, quickly leaving behind the key resistance at 8.6500
Recall that the SEK is being hammered today on a combination of poor data in the Scandinavian economy out of the retail sales and Q3 GDP figures. Selling pressure is expected to last longer after the NIER (National Institute of Economic Research) has informed that the Riksbank has plenty of space in order to curb the sluggishness in the economy, ahead of the next monetary policy meeting.
"The latest very weak NIER survey data out of Sweden underlines that a rate cut in December (SEK negative) is still the most likely outcome. In that respect note yesterday's dovish comments from Riksbank member Wickman-Parak. She said that lending has cooled down and that inflation leaves room to lower rates& All in all we recommend selling EURSEK", suggested Chief Analyst A.L.Rasmussen at Danske Bank.
Recall that the SEK is being hammered today on a combination of poor data in the Scandinavian economy out of the retail sales and Q3 GDP figures. Selling pressure is expected to last longer after the NIER (National Institute of Economic Research) has informed that the Riksbank has plenty of space in order to curb the sluggishness in the economy, ahead of the next monetary policy meeting.
"The latest very weak NIER survey data out of Sweden underlines that a rate cut in December (SEK negative) is still the most likely outcome. In that respect note yesterday's dovish comments from Riksbank member Wickman-Parak. She said that lending has cooled down and that inflation leaves room to lower rates& All in all we recommend selling EURSEK", suggested Chief Analyst A.L.Rasmussen at Danske Bank.
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