27 Feb 2015
NOK/SEK below parity in the longer-term – TDS
FXStreet (Edinburgh) - Strategists at TD Securities see the Nordic cross heading towards levels below parity in 2016.
Key Quotes
“The Riksbank was more aggressive than we had anticipated in introducing QE alongside negative rates, as it seems to be using SEK depreciation to push inflation back to target”.
“So we’ve factored in further near-term SEK weakness as we don’t think that markets have priced in the further Riksbank easing that’s likely to come”.
“We still like NOKSEK falling below parity in 2016, but don’t expect that move to get started until H2 2015”.
Key Quotes
“The Riksbank was more aggressive than we had anticipated in introducing QE alongside negative rates, as it seems to be using SEK depreciation to push inflation back to target”.
“So we’ve factored in further near-term SEK weakness as we don’t think that markets have priced in the further Riksbank easing that’s likely to come”.
“We still like NOKSEK falling below parity in 2016, but don’t expect that move to get started until H2 2015”.