SEK, NOK flows: SEK unmoved after steady economic tendency survey
Little change in the Swedish economic tendency survey in February. EUR/SEK steady, NOK/SEK has potential for gains.
The Economic tendency survey
No significant change in the Swedish economic tendency survey in February. The index fell to 90.5 from 90.6 in January. There were generally only minor changes, except in the construction indicator which gained more than 3 points. Selling prices in the business sector as a whole are less widely expected to rise than they were in January, and pricing plans are only just above the historical average.
Unsurprisingly, these numbers haven’t had any significant impact on EUR/SEK, which edged a little higher overnight. We still see NOK/SEK as having potential to rise medium term, but the NOK is currently soft, in line with the softer tone to commodity currencies overnight. NOK/SEK gains are likely dependent on EUR/NOK declines rather than any rise in EUR/SEK, which looks likely to hold steady close to 11.20.
