UBS sees Swedish krona strengthening against the euro

UBS Switzerland AG has forecasted a strengthening Swedish krona against the euro, citing falling global yields and lower energy prices as key factors removing headwinds for the currency. The bank maintains its EUR/SEK forecasts at 11.00 for December, 10.90 for March 2027, 10.70 for June 2027, and 10.60 for September 2027. Sweden’s economy is noted as robust, with manufacturing outperforming and confidence indicators pointing to solid growth.

The Riksbank has delivered a rate hike and is expected to tighten further, supported by firmer underlying inflation and its focus on headline inflation excluding temporary tax effects. UBS expects one more rate hike from the Riksbank next year, which, combined with lower global yields, stable energy prices, and tighter Riksbank policy, has improved the currency’s fundamental backdrop.

Brief written by urgent.news from Investing.com's own syndicated text. Machine-written — may contain errors; check the original before relying on it.