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22 Apr 2016
Riskbank policy favours positioning for gradual decline in EURSEK – BNPP
Research Team at BNP Paribas, notes that the Riksbank announced further easing via an extension to its QE program at yesterday’s policy meeting.
Key Quotes
“However, the pace of purchases is slowing, suggesting that the QE program is being tapered and explains the SEK’s initial reaction to strengthen. We view that a break lower in EURSEK towards 9.10 is going to be difficult to sustain due to it likely triggering rising concerns of direct FX intervention.”
Key Quotes
“However, the pace of purchases is slowing, suggesting that the QE program is being tapered and explains the SEK’s initial reaction to strengthen. We view that a break lower in EURSEK towards 9.10 is going to be difficult to sustain due to it likely triggering rising concerns of direct FX intervention.”