SEK should not weaken much even if Riksbank extends QE - BNPP

The Riksbank is expected to expand its asset purchase programme for six months for a total SEK 30bn at its monetary policy meeting tomorrow as expected by the Sam Lynton-Brown, FX Strategist at BNP Paribas.

Key Quotes

“Our economists highlight the risk of a longer extension in response to the ECB having committed to purchases for all of 2017. We think risk-reward continues to favour positioning for medium-term SEK gains and target EURSEK at 9.40 by the end of 2017.”