Bank of America sees NOK/SEK falling to 0.90 as bearish trend continues

Published 12/08/2025, 11:22
© Reuters.

Investing.com - Bank of America maintained its bearish outlook on the NOK/SEK currency pair Monday, projecting a continuation of the downward trend toward the 0.90 handle.

The banking giant noted that the Norwegian krone’s recent downtrend against the Swedish krona remained intact despite Norway’s upside inflation surprise. Bank of America’s CARS model indicates bearish sentiment for the Norwegian krone this week, particularly citing equity factors as a key driver.

Bank of America analysts suggested that any positive developments from the U.S.-Russia meeting in Alaska would likely benefit the Swedish krona more than its Norwegian counterpart, further pressuring the currency pair.

The financial institution identified a potential risk to its bearish outlook, noting that hawkish guidance from Norges Bank this week could provide support for the Norwegian currency and potentially disrupt the projected downward trajectory.

The NOK/SEK currency pair has been trending lower in recent sessions, with Bank of America’s analysis suggesting this movement represents a continuation pattern rather than a temporary correction.

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