EUR/SEK may slide back below 11.70 on a resolutely hawkish tone by the Riksbank – ING

EUR/SEK remains close to historic highs as the Riksbank prepares to announce a key monetary policy decision. Economists at ING analyze the pair’s outlook.

Expect EUR/SEK volatility today

Expect EUR/SEK volatility today: we suspect there are some upside risks and a move to the 11.85/11.90 level is possible as the Riksbank may fail to make a structurally SEK-bearish market change its mind. 

By contrast, should we see a resolutely hawkish tone, EUR/SEK may slide back below 11.70. 

As we have learned from the April meeting, the spectrum of surprises can be quite wide with the Riksbank.