NOK, SEK vigilant on inflation figures – Danske Bank

Senior Analyst at Danske Bank Mikael Milhoj noted the relevance of this week’s inflation figures in both Sweden and Norway for SEK and NOK.

Key Quotes

“There was a rather subdued initial reaction in EUR/Scandies following the French election result; indeed both NOK and SEK currently seem to be governed more by the risk of a global slowdown which China and lately oil prices have pointed towards recently with both currencies testing new year lows vis-à-vis the euro last week”.

“While focus should remain on the strength of the global business cycle – key to the small open Nordic economies - inflation figures and Riksbank minutes will take centre stage this week. Notably we expect to see positive CPI surprises in both Sweden and Norway, but crucially, for Sweden, this should prove a temporary uptick whereas we are less concerned that this will be the case for Norway. However, near-term CPI could help dampen upward pressure on both EUR/SEK and EUR/NOK for a while”.