Scandi FX weakness will persist until next year – Nordea

In Scandi-land, both NOK and SEK have enjoyed some well-needed support after the Euro pullback and Riskbank and Norges Bank meetings. Economists at Nordea analyze Scandi FX outlook.

NOK and SEK are not yet in the clear

Neither the SEK nor the NOK are in the clear yet. The main risk for both currencies remains a correction in the stock market and global growth declining more than currently anticipated.

We think Scandi FX weakness will persist until next year, when we expect to see lower global inflation allowing for lower global interest rates and rising growth which in turn should be beneficial for Scandi FX.