SEK softens despite EU optimism – ING

The Swedish krona has started the week on the softer side against the Euro, ING's FX analyst Francesco Pesole notes

SEK has been supported by equity repatriation from the US

"Normally, SEK acts as a higher-beta version of the Euro and would have outperformed on positive EU news in other conditions. But the krona appears to have decoupled from the usual global risk sentiment drivers, moving instead in near-perfect asymmetry with the dollar."

"Last week, US Treasury concerns coincided with a 1% drop in EUR/SEK. One reason may be that SEK has been supported by equity repatriation from the US, with negative US news accelerating these flows."