SEK to depreciate further if Riksbank is not hawkish next week – Commerzbank
Krona has suffered a strong depreciation since July. Antje Praefcke, FX Analyst, analyzes SEK’s outlook ahead of next week’s Riksbank meeting.
ECB coming across as much more determined compared with the Riksbank
Due to continued high inflation rates above its expectations and the risk posed by the weak currency, the Riksbank should hike the key rate next week and keep the door open for further rate steps. In my view, anything else would be a signal to the market that it is not determined enough to tackle the risks of inflation and that it is dropping behind the curve. That in turn would cause the SEK to depreciate further, thus causing inflation to become even more stubborn.
It is up to the Riksbank. I hope that it will be hawkish next week, as otherwise, I am not optimistic for the Krona, above all against the background of the ECB coming across as much more determined compared with the Riksbank.
Reprinted from FXStreet_id，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.