EURSEK – to rebound toward the 10.50 area over the coming weeks – ING
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The Swedish krona rally may have gone a bit too far. Analysts at ING expect the EUR/SEK pair to advance towards the 10.50 zone over the coming weeks.
“The big rebound in the SEK may have come too early, as its exposure to a worsening economic outlook in the eurozone and high beta to risk sentiment suggest some room for a correction now.”
“We see scope for some rebound in EUR/SEK to the 10.50 area (driven by a SEK correction) over the coming weeks. Later on, the Riksbank-ECB rate differential still points at some weakness in the pair, but a return to sub-10.00 levels may need to wait for some improvement in EU sentiment in 2023.”
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