EUR/SEK should extend its decline over the coming months – CIBC

Market news

9 August 2023

EUR/SEK should extend its decline over the coming months – CIBC

EUR/SEK retreated from the all-time highs over the past month. Economists at CIBC Capital Markets analyze the pair’s outlook.

The SEK remains undervalued

We would regard the SEK as remaining materially undervalued in PPI terms versus the EUR.

The high beta status of the currency points towards further SEK gains should global monetary policy tightening appear to have largely run its course.

Should the Riksbank be nearing the end of the tightening cycle this would help mitigate ongoing real estate headwinds. Anecdotal housing market evidence suggests negative sentiment is dissipating.

EUR/SEK – Q3 2023: 11.45 | Q4 2023: 11.04

WTI remains confined in range around $82.30 ahead of EIA, US inflation data

Gold Futures: Potential bounce in the near term

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