A Swedish real estate firm's trouble may cause fresh issues for SEK, economists at ING report.

Real estate troubles

“SBB, one of Sweden’s largest landlords, postponed the payment of dividends and revoked rights issue yesterday. This is sending shockwaves to the real estate sector in Sweden and once again raising questions about the path of monetary policy in Sweden in light of the large slumps in house prices.”

“Negative news on the SBB story, signs of growing dissent within the Riksbank Board, and the speech by a dove suggest downside risks for SEK today.”

“A rebound to 11.25-11.30 in EUR/SEK seems plausible this week.”