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BofA Remain Dovish SEK Relative to Consensus

SEK
  • Bank of America write that they expect SEK to remain under pressure this year - which should be particularly notable against both the USD and commodity-tied currencies.
  • They see EURSEK at 10.20, USDSEK at 9.27 and NOKSEK at 1.07 in 2022.
  • The Riksbank outlook is the primary reason, with BofA seeing zero rates hikes this year vs. Consensus of lift-off as soon as this year, with two further hikes seen in 2023.

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