EUR/SEK: Scope for a return to the 11.50 area on a three-month view – Rabobank

EUR/SEK has hit multidecade highs around the 11.96 level. Economists at Rabobank analyze the pair’s outlook.

Breman’s hawkish tone should help provide some support for the SEK 

While the 12.00 level is within sight, Riksbank Deputy Governor Breman’s hawkish tone and the possibility that rate rises could extend beyond September should help provide some support for the SEK. 

Given market expectations for a modest recovery in Swedish GDP growth in Q4, ahead of a recovery in domestic consumption growth in 2024, we see the potential for a return to the 11.50 area on a three-month view.