Weaker NOK and SEK in the months to come – Nordea
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
It will take more time before higher rates work through the economy. Therefore, risk-sensitive currencies such as the Norwegian krone and the Swedish krona are set to remain under pressure.
“Risk-sensitive currencies like the NOK and SEK will continue to feel the pressure of higher global rates, falling equity markets, and a gloomy global economic outlook. We do not see this changing in the short-term.”
“Over time, when central banks reach peak rates, risk sentiment could improve as markets focus on potential rate cuts that could be in the cards in a year or two. Improved risk sentiment and a retraction of the US dollar dominance should be good news for both the NOK and the SEK.”
“Our view of relatively high energy prices and rising petroleum investments in Norway over the coming years imply a better outlook for the NOK than the SEK longer out.”
[/s2If]
Join Our Telegram Group
