The Swedish krona has proven to be the weakest performing major versus both the US dollar and the euro in the first quarter. But as rates are set to rise, economists at CIBC Capital Markets expect the EUR/SEK pair to trade back towards 2021 lows into the second half of the year.

SEK set for liftoff as Riksbank hike expectations rise

“Should CPI remain elevated and external risks moderate we would expect the market to increasingly price in a hawkish Riksbank bias, validating our positive SEK outlook.” 

“We anticipate EUR/SEK trading back towards 2021 lows into H2 2022.”