The EUR to SEK exchange rate shows a bearish bias as the euro struggles against the Swedish krona. Key drivers include the interest rate differential between the European Central Bank (ECB) holding rates steady and the Riksbank's cautious approach at 2.25%. Additionally, the eurozone's ongoing geopolitical challenges, particularly regarding the war in Ukraine, weigh on its value. Meanwhile, Sweden's anticipated GDP growth could lend support to the SEK.
The expected near-term trading range is likely to fluctuate within a stable band, close to current levels. Upside risks include positive sentiment from Germany's consumer confidence data that may lift the euro, while downside risks could emerge from elevated energy prices, as oil prices are currently hovering below recent averages, impacting broader economic sentiment.
The recent price data shows the EUR to SEK near 10.83, about 1% lower than its three-month average, indicating room for potential movement based on these factors.
