UBS sees upside potential for NOK/SEK
2024.05.29 06:45
UBS expressed a positive outlook on the currency pair, indicating a potential upside.
The firm noted that both the Norwegian Krone (NOK) and the Swedish Krona (SEK) are outperforming against their end-of-second-quarter targets, which are set at 11.70 for the Euro to Norwegian Krone () and 11.80 for the Euro to Swedish Krona (). Despite this, UBS maintains a higher confidence in the SEK reaching its target compared to the NOK.
The bank’s increased confidence in the SEK is due to the Consumer Price Index (CPI) in Sweden undershooting the forecasts made by the Riksbank, Sweden’s central bank. This development suggests that there could be a heightened possibility of the market pricing in additional monetary easing ahead of the upcoming Riksbank meeting scheduled for June 27.
The performance of the NOK and SEK against the Euro is a key indicator of their relative strength. With the currencies surpassing UBS’s projections earlier than anticipated, it reflects a dynamic foreign exchange market. The NOKSEK pair, in particular, is being closely watched as it represents the exchange rate between the two Scandinavian currencies.
UBS’s outlook is significant as it provides insights into expected currency movements and potential central bank actions. Investors and traders often look to such analysis to inform their decisions in the foreign exchange markets.
The anticipation of the Riksbank’s response to the lower-than-expected CPI figures adds an element of uncertainty to the market, which could influence trading strategies in the weeks leading up to the June 27 meeting. The bank’s decision on whether to adjust its monetary policy could impact the SEK’s performance against both the NOK and the Euro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
