EUR/SEK: Krona to strengthen gradually as Riksbank normalizes policy ahead of ECB – MUFG

During January the krona weakened against the euro from 10.294 to 10.474. In the year ahead, economists at MUFG Bank expect the krona to strengthen modestly against the euro.

Riksbank moves to gradually tighten policy ahead of ECB

“The krona should derive more support against the euro at least from our view that the Riksbank will normalize policy ahead of the ECB.”

“The Riksbank has just ended their QE programme at the end of last year and has signalled a willingness to begin shrinking their balance sheet before rate hikes are currently planned in 2024.”