NOK/SEK has been trending higher since early August. According to Jane Foley, Senior FX Strategist at Rabobank, the pair may trade as high as 1.01 by the end of 2021 as policymakers in Sweden will be trailing those in Norway by some margin.
SEK to outperform the EUR moderately
“A more constructive economic outlook from the Riksbank at the September 21 meeting may provide the SEK with a little support. That said, we would favour buying NOK/SEK on dips based on expectations of a hawkish Norges Bank next week combined with recent gains in the oil price.”
“While we see room for the SEK to outperform the EUR moderately (we see EUR/SEK at 10.10 on a 1 to 3 month view), we expect the SEK to lag the gains in the NOK in the months ahead and see scope for a move to NOK/SEK 1.01 by year-end.”
