EUR/SEK: Krona unlikely to record significant gains over the winter half – Commerzbank

The Swedish krona is struggling to record gains. In the opinion of economists at Commerzbank, SEK will continue to struggle

The great unknown – the weather this winter

“Many negative factors have already been priced into SEK, but as long as it is unclear how the eurozone and its economy will get through the winter it will be difficult to price the risk of ‘a deep recession in the eurozone with the resulting effects on the Swedish economy’ out of SEK. In particular, as rate hikes will also affect the economy, in particular the housing market.”

“I fear that SEK will be unable to record significant gains over the winter half.”