SEK appears vulnerable to housing news – Danske Bank

The Swedish Krona is expected to come under pressure later in the week on news from the domestic housing sector, noted Mathias Mogensen, Analyst at Danske Bank.

Key Quotes

“EUR/SEK traded on a heavy note yesterday, which probably reflected broad-based euro weakness”.

“As for Swedish drivers, we see a small uptick in flats prices in January, according to our own model. However, it is not a sign of a turnaround, but may still lend some temporary support to the SEK”.

“Meanwhile, the market may be susceptible to potential bad news in the housing developers’ annual reports, which start to hit the market this week (SEK negative)”.