Economists at Danske Bank continue to expect EUR/SEK to move higher in the coming 12 months to 11.20 on the back of rising concerns for global recession and the expectation of a substantial drag on domestic demand and real asset prices.

Weakness in store

“We are negative on the krona as the SEK usually underperforms in a global, in particular European, recession risk-off environment and also since the Riksbank’s tightening of financial conditions will (is intended to) be a substantial drag on domestic demand and real asset prices.”

“We look for weaker SEK in the 6-12M perspective, forecasting 11.20 in 12M.”