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Investing.com - UBS announced Wednesday it is maintaining its current quarterly forecast profile for EURNOK and EURSEK exchange rates while shifting the timeline one quarter further out.
The Swiss banking giant noted that both Nordic currencies experienced strong movements at the beginning of 2023 before consolidating at higher levels in recent weeks. The bank highlighted that Norway’s central bank, Norges Bank, delivered a surprising interest rate cut in June.
UBS also pointed to recent economic data from Sweden that has raised questions about whether the Riksbank may have already reached the conclusion of its monetary easing cycle. These developments have influenced the bank’s decision to adjust its forecast timeline.
Looking ahead to 2026, UBS continues to expect both the Norwegian krone and Swedish krona to strengthen against the euro, citing domestic factors and the anticipated European economic recovery as key drivers. The bank maintains its view that both Nordic currencies will ultimately outperform the euro.
UBS clarified that while it still expects the same currency performance trajectory, it now anticipates the strengthening process will take more time to materialize than previously forecast.
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