Both the SEK and NOK have had a terrible start to the year. Economists at Nordea expect Scandies to remain under downside pressure.

More short-term turbulence in financial markets

“We are unsure whether the worst is behind given our view for more short-term turbulence in financial markets. While both the Riksbank and Norges Bank will have to follow suit with the ECB and Fed to prevent further weakening of their currencies, this will likely not be enough to help the SEK and the NOK during periods of risk-off.”

“While we think the SEK and the NOK will move broadly sideways until the summer, the risk is clearly to the downside. Longer out, a normalisation of global interest rates should lead to a somewhat stronger SEK and NOK against the EUR. However, we see them both remaining weak in a historical context.”