Bad start to the year, but the Swedish Krona and the Norwegian Krone should see improvement ahead, in the view of analysts at Nordea.

Risk-sensitive currencies should do better if calls for global recession do not materialise

“China’s reopening and other governments’ investments will support commodity prices ahead and underpin the global economy, which should favour risk-sensitive currencies such as the CAD, AUD, NZD, NOK and SEK. These currencies should do better if the calls for a global recession do not materialise and the USD weakens.”

“After a bad start of the year, we expect somewhat lower EUR/NOK and EUR/SEK ahead, but both will jump during periods when risk-sentiment turns sour and if a recession comes about. We remain in the cautiously optimistic camp.”