Weaker growth prospects have weighed on the Swedish krona and the Norwegian krone. Economists at Danske Bank expect EUR/SEK to move higher over the coming months to 11.20 while EUR/NOK is set to rise over the next three months.

More weakness in store for scandies

“We stick to our negative view on the SEK, which is underpinned by the gloomy global growth outlook, associated negative outlook for global and Swedish equities alike and relative monetary policy. In addition, more frontloading of rate hikes will exacerbate the downturn in the Swedish housing market, a headwind for the krona.” 

“We look for weaker SEK in the 6-12M perspective, forecasting 11.20 in 12M.”

“We still think EUR/NOK is heading higher over the coming 3-6M driven by a slowdown in growth, a European recession, volatile asset markets and further spread tightening in the short-end of rates curves.”

“We forecast EUR/NOK at 10.70 in 3M.”