Morten Helt, Senior Analyst at Danske Bank, assessed the prospects for the Swedish Krona in the next months.
Key Quotes
“EUR/NOK continues to trade sideways within the 9.40-9.60 range and today’s house price release from Real Estate Norway should not have much spot impact”.
“Meanwhile, the SEK is expected to gain as we approach the first Riksbank rate hike in seven years, even though it is widely anticipated. The growth outlook is however deteriorating, which is typically a headwind for the pro-cyclical krona. One reason for the slowdown is the housing market”.
“Another is the global growth cycle, where the US is accelerating while the eurozone, which has a greater impact on Swedish growth, the Riksbank and the SEK, continues to lose momentum. This week brings important input to our preliminary Q3 GDP forecast 1.9% (versus 2.4% in Q2)”.
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