NOK/SEK aims to parity in 2018 – Societe Generale

Strategists at Societe Generale see the Nordic cross returning to the parity level within a year’s view.

Key Quotes

“Inflation rates in Sweden and Norway are moving apart, with the former surging and the latter cooling”.

“This will pressure NOK/SEK in the months ahead via diverging monetary policy expectations”.

“Since 2011, the pair has been strongly driven by the relative PMIs of the two countries, while Sweden’s exports are more exposed to the euro area and will benefit to a larger extent from its ongoing recovery”.

“Stabilizing oil prices next year should limit NOK gains, whereas Sweden is enjoying a strong economic upswing”.