"It's local derbies, more or less," Eriksson told reporters at the draw on Friday after England were placed in Group Six with Wales, Northern Ireland, Poland, Austria and Azerbaijan.
"Wales did very well in qualification (for Euro 2004), they could have won the group. It will not be easy at all.
"I am sure Wales want to beat England at any cost but we want the same. We will see."
After guiding England through to the Euro 2004 finals, Eriksson will be confident of winning the group and the Swede said he was pleased to have avoided the Netherlands, one of the dangerous floaters in the draw.
Eriksson was also happy to be facing Poland, a team England have played many times in previous qualifying groups.
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Wales manager Mark Hughes has fond memories of the last time the Welsh faced England, the former Manchester United and Barcelona striker scoring on his international debut to secure a 1-0 victory at Wrexham in 1984.
"It was in my hometown and I scored the winner. I've got happy memories of that game and I hope to have happy memories of the games we've got ahead of us as well," Hughes said.
"England are doing very well at the moment. They are one of the top sides so it's a big test for us. I'm sure the Welsh lads will relish the prospect.
"England are clear favourites in the group. England will be very happy with the make-up of the group. They know they have a difficult fixture, they won't relish coming to the Millennium Stadium. They know that we are a good side at the moment."