The environment remains difficult for the Swedish krona. Economists at Commerzbank expect SEK to struggle to gain some ground against the euro.

SEK is struggling

“High inflation levels with low-interest rates are putting pressure on SEK. If Riksbank were to sound notably more hawkish that does not necessarily have to be positive for krona, as we have already pointed out in connection with other central banks and currencies: rising interest rates entail the risk of a strong economic downturn.”

“Krona is susceptible to high-risk aversion. And as fears of a recession are unlikely to ease suddenly, risk aversion in the financial markets is likely to remain high. SEK is therefore likely to struggle with a further recovery against EUR.”