The NOK and the SEK could get temporary relief until December – Nordea
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Softer US inflation offered markets some long-awaited relief, sending the Norwegian krone and the Swish krona up. Economists at Nordea believe that the Scandinavian currencies could remain resilient until December.
“If our expectation for a continuation of risk-on until December materialises, that would be good news for the NOK and SEK, which are both extremely sensitive to sentiment.”
“EURNOK could come around 10.00 and we could see USDNOK around 0.95 in the next few weeks. However, we don’t expect this situation to last for a long time.”
“The Fed could stop the rally with a hawkish message in December as good market developments are not in favour of reducing inflationary pressures, the Fed wants tighter financial conditions (stocks down; credit spreads, rates and USD up). This is why we see EURNOK at 10.60 (USDNOK around 10.90) and EURSEK at 10.90 (USDSEK around 11.25) in three months’ time.”
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