Flash: EUR/SEK to fall to 8.20 over the next 3 months - UBS

FXstreet.com (Córdoba) - Swedish GDP grew 1.7% yoy in Q1, up from 1.4% yoy in Q4 '12 and stronger than consensus, which was looking for an unchanged yoy growth rate, notes the UBS team.

The SEK strengthened on the news, with EURSEK falling towards 8.60 and the USDSEK dropping over 1% to below 6.65. "Given the ongoing recession in the Eurozone, we expect the EURSEK to remain near current levels in the near term", says UBS. "Over the next 3 months, however, we forecast EURSEK falling to 8.20 on the back of an improvement of the global economic environment".