Having lost ground vs. the EUR from November into early January the SEK appears to have found its feet in recent sessions in the approach to the February Riksbank meeting. Economists at Rabobank expect the EUR/SEK pair to move back lower to the 10.30 mark over the next month.

Riksbank may want to allow itself more flexibility on policy

“The news that some covid restrictions will be scrapped from next week is encouraging. That said, as in the Eurozone, significant signs of wage inflation are absent. Even so, the Riksbank may have to take a left out of Lagarde’s book and admit that inflation is likely to remain elevated for longer than previously expected, even if it is likely to fall back later in the year.” 

“We expect EUR/SEK to edge back to the 10.30 area on a one-month view.”