The SEK has gone from being the best-performing main forex towards the USD and the Euro in 2020, to one thing of an over-run, after a lackluster Q1. Within the opinion of CIBC Capital Markets economists, the long-term outlook stays comparatively constructive regardless of present considerations about covid, which ought to weigh on near-term SEK sentiment.

“Ahead-looking survey knowledge continues to counsel that exercise ought to stay robust, particularly as we head into the second half of the yr. In fact, as a small open financial system, depending on each world commerce and the efficiency of the German financial system particularly, any signal of a considerably delayed eurozone restoration dangers weighing on the SEK. ”

“The extension of the lock-in and short-term company dividend outflows present short-term headwinds for the SEK, certainly, we have now tempered the relative outperformance towards the euro on the forecast profile. Nonetheless, whereas the worldwide financial system remains to be on the verge of a robust rebound in 2021, we nonetheless preserve a constructive SEK bias in the long term. “

“A pick-up in exercise on the finish of the second quarter, mixed with secure financial coverage, though the central financial institution holds additional easing if mandatory, maintains a bias in favor of SEK positive factors.