The survey found that the effect of an SEK repricing could be “lasting” for a variety of reasons, including bearish predictions from the market that a September 6 Riksbank meeting will see the central bank leave Swedish benchmark interest rates unchanged. The SEK could be set to become the FX market’s safe haven of choice in the near-term, as the AUDUSD and NZDUSD trades become overvalued, says SEB head of FX strategy Carl Hammer.
“According to our model, the AUD and NZD are overvalued, and we have been expecting some market reorientation toward skandies away from the front-runner reserve currencies,” says Hammer.
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