New dovish signals from the Riksbank and a deteriorating risk sentiment backdrop lead analysts at Credit Suisse to expect further EUR/SEK upside. A test of test of decade highs at 11.20 is on the cards.

More SEK weakness ahead

“We think the last two weeks have represented a deterioration to both the local and the global backdrop, and as such we now see scope for EUR/SEK to break above our 10.87 target set mid-June), and test 11.20 multi-decade highs.”

“A key motivation for our more SEK-bearish target is what we perceive to be a surprisingly dovish Riksbank.”