DCSIMG

Summer and the SEK – EURSEK undervalued

Published date: 12 Jul 2012 | Read full report | Disclaimer
SEK EUR
SEK EURThe krona is very strong - EUR/SEK is trading at the lowest levels seen since the autumn of 2000.
 
A strong krona is supported by large interest rate differentials between Sweden and the Euro zone and a pretty decent trend on the stock exchange. From a fair value perspective, the krona is overvalued, however.
 
Even though we expect the krona to weaken in future, our EUR/SEK forecast increasingly appears not to hold water and we revised downwards our target rates for the entire forecast horizon on Monday 9 July.
 

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