SEK and NOK: beware of cycle-sensitivity

Investors should not forget about cycle-sensitivity of the Swedish Krona and Norwegian Krone as US, EU and Norway GDP data could potentially cause volatility. Volatility of SEK and NOK could be higher than usual this week.

US and several European economies continue to slow down for couple of months now because of several global risks such as US-China trade war, threat of no-deal Brexit, Iranian conflict etc. New GDP data could show further decline in performance of global superpowers.

Such development will surely push demand for anti-risk assets such as gold, USD, treasury bonds, government bonds etc. Growing recession fears put premium on such assets. SEK and NOK stand on the other side of the barricade. Unconvincing performance of crucial Eurozone economies this week could hurt cycle-sensitive assets such as SEK and NOK.


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