SEK: Weak enough for now – TD Securities

News

“The SEK has depreciated more than any major currency in 2019. This weakness now looks overdone, however, and no longer appears to be supported by underlying fundamental or technical factors,” TD Securities analysts argue.

Key quotes

“The Swedish economy has softened but the move looks overdone – particularly as other risky assets have recovered sharply YTD.”

“With a lot of the bad news now in the price, we think the SEK looks vulnerable to a correction. This week’s Riksbank meeting should pass quietly, but our base case for a broadly unchanged policy stance is unlikely to provide further fuel to SEK bears.”

“Against this backdrop, we think EURSEK looks ripe for a reversal lower. The October 11 high (10.5370) should provide a notable degree of resistance heading into this week’s policy meeting. As an alternative, we think CADSEK has potential for a significant retracement lower as we are generally inclined to fade CAD strength in this environment.”

Products You May Like

Articles You May Like

The iShares U.S. Financial Services ETF’s Underlying Holdings Imply 16% Gain Potential
The USDJPY tests 100 hour MA
EUR/USD still risks a test of YTD lows – UOB
Gibraltar releases Iranian tanker
Analyst who turned heads by predicting a ‘Lehman-like’ plunge says we’re not out of the woods yet

Leave a Reply

Your email address will not be published. Required fields are marked *