SEK: Still looking for the correction lower - ING

Analysts at ING continue to see the recent EUR/SEK upside as an overreaction, with the cross trading 1.5% rich versus its short-term fair value.

Key Quotes

“Given the current attractive levels and what is likely a relatively cleaner positioning (following the SEK sell-off), we expect EUR/SEK to stabilize below the 9.80 level.”

“As per the data points, the focus will be on Riksbank Minutes (Thu). Given the October Riksbank meeting took place before the ECB meeting, we don’t look for signs of pre-commitment on the pace of QE (extension vs an end).”