The Swedish Krona has been a negative standout in the G10 space over the past few days. However, economists at ING still believe that the SEK will be able to recover and target sub-11.00 levels before the summer.

The risk of a black-swan scenario in Sweden has not dramatically increased

“Since we don’t believe the risk of a black swan scenario in Sweden has materially increased, we think that SEK will recover gradually over the coming months.” 

“We still expect a return to the 10.60-70 levels by the second half of this year, even though upside risks for EUR/SEK have modestly risen.”