Ahead of tomorrow’s Riksbank decision, economists at Credit Suisse raise their EUR/SEK Q1 target from 11.30 to 11.50 and would look to fade consolidation triggered by hawkish policy rate projections.

Further SEK weakness remains the path of least resistance

“Ahead of tomorrow’s Riksbank decision, we raise our EUR/SEK Q1 target from 11.30 to 11.50.”

“There is a possibility that hawkish policy rate projections could trigger a consolidation in EUR/SEK to the 11.00-11.10 zone: we would expect SEK weakness to resume thereafter.”

See – Riksbank Preview: Forecasts from seven major banks, 50 bps, but the peak is not far off