Weaker growth prospects have sent the Swedish krona to its weakest level since March 2020. Economists at Danske Bank expect EUR/SEK to move higher over the coming months to 11.20.

Krona hit by triple whammy 

“We stick to our long-held, non-consensus, negative view on the SEK, which is underpinned by the gloomy global growth outlook, associated negative outlook for global and Swedish equities alike and relative monetary policy – a triple whammy if you like.”

“The Riksbank’s 100 bps rate hike had no lasting positive impact on the krona. The rate path underwhelmed expectations. In addition, more frontloading will exacerbate the downturn in the Swedish housing market, a headwind for the krona.”

“Forecast: 10.80 (1M), 11.00 (3M), 11.20 (6M), 11.20 (12M).”