SEK: hard not to be positive over a long term – RBC CM

Elsa Lignos, Senior Currency Strategist at RBC Capital Markets, suggests that over a long (1-2 year horizon) it is hard not to be positive on SEK.

Key Quotes

“Inflation and inflation expectations are rising and markets are still priced for negative rates out to the end of the RIBA futures strip (Sept 2018). But on a 1-3 month horizon, we think SEK is more likely to keep underperforming as it has turned into choice funding currency for higher yielding G10 FX.”