ING’s Francesco Pesole highlights that EUR/SEK has fallen about 1.8% from its early-October high, helped by French fiscal concerns and prior short-term overvaluation. The pair is now seen as fairly valued, unlike cheap EUR/USD. With the Riksbank signalling readiness to hike in November and ECB expectations repriced dovishly, ING’s one-month EUR/SEK target is 11.15, with risks skewed to further downside.
Brown Brothers Harriman’s (BBH) Elias Haddad notes USD/SEK is firmer on broad US Dollar (USD) strength, while Sweden’s September Consumer Price Index (CPI) data were mixed.
Nomura strategists highlight that Swedish CPIF ex-energy inflation surprised to the upside in July even as headline CPIF slowed, largely due to government fuel duty cuts and public transport subsidies.