SEK eyes the Swedish housing market for direction – Danske Bank
Mathias Mogensen, Analyst at Danske Bank, noted the Swedish Krona stays vigilant on today’s announcement in the critical housing market.
“Today, the Swedish government is expected (it is not 100% certain) to decide on t he FSA’s amortisation proposal in which all new mortgage holders who borrow more than 4.5 times their gross income must amortise 1pp more of their mortgage per year than what they need to amortise today. This is a potential major market mover”
“If the government gives the green light to the FSA proposal it could send EURSEK a bit higher, whereas a red light should open for a bigger correction lower in EURSEK. Key support is found around 9.81 and resistance just below 10.02. We still prefer to buy on dips and look for an eventual break of 10.00”.