An instrument that captures the safehaven feature of SEK seen over the last years is volatility skew. Interesting right now is that the risk reversal is half way back to where we traded during the “SEK is a safehaven”-era. Comparing the risk reversal vs. spot, recent move in the krona is indeed justified and there could even be further room to the downside in EURSEK.
Read the full report: FX Research
Nordea