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UBS Comments on The Krona After This Week's Surprise Rate Cut at Sweden's Central Bank

BY MT Newswires | ECONOMIC | 09/25/25 10:39 AM EDT

10:39 AM EDT, 09/25/2025 (MT Newswires) -- Sweden's Riksbank rate cut to 1.75% on Wednesday surprised markets, but was supported by weak economic data and a strong krona SEK), resulting in a lower EUR/SEK, said UBS.

United States tariffs and a sluggish labor market continue to weigh on Sweden's economy, but fiscal stimulus and favorable global conditions support the krona, wrote the bank in a note to clients.

With tail risks subsiding and global growth improving, EUR/SEK is expected to fall below 11.0 and remain under pressure into 2026, stated UBS.

The bank likes to be short the pairing at current levels.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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