Risk for higher EUR/NOK and EUR/SEK in the months ahead – Nordea

Risk-sensitive currencies such as the Norwegian krone and the Swedish krona are very vulnerable. Therefore, economists at Nordea see EUR/NOK and EUR/SEK at 10.50 and 11 by year-end, respectively. 

Overshooting is likely

“We believe both the SEK and the NOK will remain weak in the short term, as they are very vulnerable to negative risk sentiment.”

“We see EUR/SEK around 11 and EUR/NOK around 10.50 towards year-end, but overshooting is likely and the risk is to the upside for both crosses during periods of market stress, especially against the USD (we see USD/SEK around 11,50 and USD/NOK at 11 around year-end).”