On Tuesday, EUR/SEK only dipped briefly before returning to the 10.60 level. Economists at Commerzbank expect the Swedish krona to remain under pressure as risk aversion dominates.
SEK to benefit from a hawkish Riksbank if recession fears abate
“While the market is dominated by risk aversion SEK will struggle to regain ground. Even if the inflation expectations, due for publication today, rise and point towards a restrictive Riksbank on 30th June.”
“The recession fears of the market would have to have calmed a little by the end of June for SEK to benefit from a Riksbank that is more hawkish than expected.”