Nordea Recommends Buying Norwegian Krone Against Swedish Krona

Investors should buy the Norwegian krone versus the Swedish counterpart on the view that Norges Bank interest rates will be more supportive of the currency, Nordea Bank AB (NDA)’s “Alpha Strategy” team said in a note.

“Looking into the likely trajectory of the policy rates we judge that the differential will be supportive” for the Norwegian krone versus Swedish krone, the bank said. “We think Riksbank is very likely to resume the easing cycle, while there are limited reasons for Norges Bank to do so.”

Nordea said it’s buying the krone at 1.1307 per krona and targeting 1.18, according to the note.

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net

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