Downside limited in EUR/SEK – Danske Bank

FXStreet (Edinburgh) - According to Arne Rasmussen, Chief Analyst at Danske Bank, occasional pullbacks in the cross could appear to be limited for the time being.

Key Quotes

“In Sweden the March labour market report came out stronger than expected but there are no signs of wage pressure so far, which is the focus of the Riksbank”.

“As such, we expect the downside in EUR/SEK to be protected due to the ‘Riksbank put’ ahead of the recent low from 12 March at 9.0552”.

“We will only see a sustained rally in the SEK at the moment the Riksbank is confident that deflation has been defeated. That is clearly not the case yet”.