📝Scandi FX to Remain Under Pressure Until Summer: Nordea

Tighter financial conditions are needed to soften the still tight labour market and bring inflation in the US and elsewhere back towards 2%. Yet, tight financial conditions are not the best of news for the NOK and the SEK - which have weakened over the past week with hotter macro data from the Euro Area and the US. With even tighter financial conditions needed to bring inflation back to 2%, the NOK and the SEK will remain under pressure at least until the summer, we believe. That is even with Norges Bank and Riksbank hiking rates up towards 4%, as markets currently anticipate. If the Scandinavian central banks do not follow through, the NOK and the SEK will likely become even weaker. - Nordea