EUR/SEK: Only in the course of 2023 will the krona make any further gains – Commerzbank
|In recent weeks, the Swedish krona has suffered strongly from the increased risk aversion in the wake of the Ukraine conflict. Once the war events subside, the SEK should be able to correct the losses. However, as long as the Riksbank maintains its ultra-expansionary stance, the krona will not be able to make any additional gains until 2023, economists at Commerzbank report.
Bringing up the rear thanks to risk aversion and Riksbank
“If the Ukraine conflict subsides, the krona could at least recover the losses associated with risk aversion. But it is likely to have a hard time against the euro this year, as the ECB is expected to raise the key interest rate in the fall.”
“The krona could appreciate again only well into next year when the Riksbank is likely to slowly make its monetary policy somewhat less expansionary.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.