Economists at Riksbank expect EURSEK to move higher over the coming months to 11.20. On a six to 12-month horizon, they see a recovery and sustainable support to risk assets and the Krona.

SEK weakness to return

“We stick to our non-consensus view on a weaker SEK amid weak growth dynamics, especially for Europe, scope for another downturn in global equities and relative monetary policy. We therefore forecast EURSEK at 11.20 in 6M.”

“Further out, we expect recovery and sustainable support to risk assets and the SEK and forecast EURSEK at 11.00 in 12M.”

“The key downside risks to our forecasts are a dovish Fed pivot, sustained equities rebound, brighter growth outlook not least for Europe or a shift in Riksbank monetary policy stance including a shift in FX policies.”