Economists at TD Securities look for the Riksbank to leave policy on hold and the Norges Bank to hike. In their view, NOK/SEK offers better dip-buying opportunities despite clear policy divergence.
Buy dips towards 0.97 rather than chase the pair higher
“While the Riksbank is all but certain to leave policy unchanged, the Norges Bank will hike rates – a post-pandemic first for a G10 central bank.”
“We think there is probably a bit too much good news priced into NOK, even if the central bank narrative and fundamentals do appear better than SEK.”
“We think we're nearing the top-end of the range and prefer to buy dips towards 0.97 rather than chase the momentum here.”
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