Economists at TD Securities look for the Riksbank to leave policy on hold and the Norges Bank to hike. In their view, NOK/SEK offers better dip-buying opportunities despite clear policy divergence.
See – NOK/SEK: Scope for a march forward to 1.01 by year-end – Rabobank
Buy dips towards 0.97 rather than chase the pair higher
“While the Riksbank is all but certain to leave policy unchanged, the Norges Bank will hike rates – a post-pandemic first for a G10 central bank.”
“We think there is probably a bit too much good news priced into NOK, even if the central bank narrative and fundamentals do appear better than SEK.”
“We think we're nearing the top-end of the range and prefer to buy dips towards 0.97 rather than chase the momentum here.”
