EUR/SEK to hit 11.00 if Europe takes steps to curb imports of Russian commodities – ING

EUR/SEK has reached the 10.80 mark, a level last seen during the financial turmoil in April 2020. Economists at ING expect the pair to continue grinding higher towards the 11.00 level.

11.00 in EUR/SEK is not out of reach

“The krona remains the worst-positioned currency to the Russia-Ukraine conflict and its market implications, as it combines a high beta to risk sentiment with geographical vicinity, negative exposure to energy prices and also lacks a supportive domestic monetary tightening story.” 

“We think that SEK will have to wait for a decisive de-escalation in tensions before being able to recover recent losses, and we cannot exclude a move to 10.90-11.00 in EUR/SEK, especially if Europe takes steps to curb imports of Russian commodities.”