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27 Jan 2015
NOK/SEK likely to breach parity this year – TDS
FXStreet (Edinburgh) - Analysts at TD Securities believe the bearishness around NOK/SEK could drag the Nordic benchmark cross through parity during the current year.
Key Quotes
“A 9% appreciation for a currency where we now expect the central bank to introduce negative rates in February may look an odd conviction”.
“But protracted weakness in oil prices, where we now think prices will dip into the $30s before bottoming and lingering in the low $40s through the first half of 2015, compared to an old trough of $60 and steeper recovery has scope to dramatically weigh on Norwegian growth”.
“Meanwhile, Sweden is the high beta to Eurozone growth which will benefit from any stimulus that makes its way into the pipeline post-ECB QE”.
Key Quotes
“A 9% appreciation for a currency where we now expect the central bank to introduce negative rates in February may look an odd conviction”.
“But protracted weakness in oil prices, where we now think prices will dip into the $30s before bottoming and lingering in the low $40s through the first half of 2015, compared to an old trough of $60 and steeper recovery has scope to dramatically weigh on Norwegian growth”.
“Meanwhile, Sweden is the high beta to Eurozone growth which will benefit from any stimulus that makes its way into the pipeline post-ECB QE”.