Nordea strategists remain constructive on the Swedish Krona (SEK), viewing it as undervalued and supported by robust domestic fundamentals and improving macro data. However, they note fading momentum into 2025–2026, a more hawkish Federal Reserve (Fed), Middle East uncertainty and dependence on EUR/USD stability. They see potential Riksbank hikes as supportive via narrower rate differentials but warn upside in SEK is now more limited.
Undervalued but less bullish now
“The Swedish krona remains “undervalued” according to our view and we expect the improved macro economic score card to gradually appreciate the SEK over the forecast horizon.”
“Howe…
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