📝 Focus On Riksbank's Communication Regarding SEK: Danske Bank

The Riksbank is likely to raise interest rates by another 50 basis points on Wednesday but this is priced in by markets so shouldn't have too much impact on the Swedish krona. Instead, the central bank's communications regarding the krona will be key as trade-weighted SEK has fallen back to February levels, which had prompted the Riksbank to express concerns over the currency's weakness.

If the Riksbank Indeed do as we expect, and as long as they do not sound too complacent on the SEK, we still see a short-term (one-three month) window of opportunity for a somewhat lower EUR/SEK on the back of valuation (relative rates).

- Danske Bank