27 July 2015, 06:36
Sweden retail sales are solid and the preliminary release of Q2 GDP should
help unwind some of the recent currency weakness following the surprise Riksbank
cut, which has driven EUR/SEK close to the top end of its recent multi-month
range.
Moreover, the release of the Economic Tendency Report will provide further insights into the country's economic outlook and it is expected that the ETS Index to resume its uptrend. It is expected that a solid rebound in Q2 economic activity despite the recent weaker-than-expected data reflected in our DSI.
"Sweden Activity and confidence data releases in the coming week are expected to steer the path for the SEK, likely confirming a positive economic outlook", says Barclays.
The trend of weaker data is likely to only prove temporary. Further ahead, it is expected that a modest pick-up in inflation and further improvements in the Swedish labour market, likely allowing the Riksbank to tolerate moderate currency strength.
"Short EURSEK on the basis of the superior growth prospects in Sweden, a very undervalued SEK and the expectations that the Riksbank is close to the bottom of its easing cycle and see the recent uptick in EURSEK as an opportunity to re-engage in short positions", added Barclays.
Source : FX-Primus
#FX
#Forex
#SaleForex
#SwedenRetailSales
#Q2_GDP
#HelpUnwind
#SEK_Weakness
Moreover, the release of the Economic Tendency Report will provide further insights into the country's economic outlook and it is expected that the ETS Index to resume its uptrend. It is expected that a solid rebound in Q2 economic activity despite the recent weaker-than-expected data reflected in our DSI.
"Sweden Activity and confidence data releases in the coming week are expected to steer the path for the SEK, likely confirming a positive economic outlook", says Barclays.
The trend of weaker data is likely to only prove temporary. Further ahead, it is expected that a modest pick-up in inflation and further improvements in the Swedish labour market, likely allowing the Riksbank to tolerate moderate currency strength.
"Short EURSEK on the basis of the superior growth prospects in Sweden, a very undervalued SEK and the expectations that the Riksbank is close to the bottom of its easing cycle and see the recent uptick in EURSEK as an opportunity to re-engage in short positions", added Barclays.
Source : FX-Primus
#FX
#Forex
#SaleForex
#SwedenRetailSales
#Q2_GDP
#HelpUnwind
#SEK_Weakness
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