The Swedish krona rally may have gone a bit too far. Analysts at ING expect the EUR/SEK pair to advance towards the 10.50 zone over the coming weeks.

Riksbank-ECB rate differential still points to some weakness in EUR/SEK

“The big rebound in the SEK may have come too early, as its exposure to a worsening economic outlook in the eurozone and high beta to risk sentiment suggest some room for a correction now.” 

“We see scope for some rebound in EUR/SEK to the 10.50 area (driven by a SEK correction) over the coming weeks. Later on, the Riksbank-ECB rate differential still points at some weakness in the pair, but a return to sub-10.00 levels may need to wait for some improvement in EU sentiment in 2023.”