SEK: Riksbank on hold not necessarily SEK bullish
To cut or not to cut in December is a hard guess, but a scenario where the Riksbank leaves rates unchanged will likely come with a lower rate path, making the curve flatten. In that scenario EURSEK might initially fall on the announcement, but the Riksbank joining the “low for long”-club will likely support EURSEK on the medium term. To see substantial stronger SEK next week we likely need the Riksbank to be on hold and an unchanged rate path.
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Nordea