EUR/SEK still a buy on dips – Danske Bank

Jens Sorensen, Chief Analyst at Danske Bank, recommended buying the cross on occasional dips.

Key Quotes

“In the Scandies, Tuesday’s Swedish inflation numbers bolstered our bullish views on EUR/SEK and NOK/SEK while they supported our case of no Riksbank rate hikes this year”.

“The recent move higher in EUR/SEK has been driven mainly by relative yields – that is, repricing of the Riksbank – while the housing market has taken a breather on the back of last week’s positive data from Valueguard (which in our view was a temporary correction)”.

“We continue to see EUR/SEK as a buy on dips, repeating our 3M target of 10.00. If 10.00, the next levels to watch are 10.03 and 10.08”.