Analysts at Nordea see increasing momentum building for NOK performance vs the SEK in the medium-term.
Key quotes
“While Sweden is running a powerful QE program, the scope for QE in Norway is practically non-existent.”
“Since all assets in the Oil fund are invested abroad this involves large NOK purchases by Norges Bank – undoubtedly NOK positive in the medium-term.”
“NOK/SEK has been pretty tight with ‘risk’ recently but given the very cheap valuation, we would expect the ‘risk’-link to decrease.”
“We enter long NOK/SEK with a target of 1.0150 and S/L at 0.93.”
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