Swedish krona has further to fall

The recent run of positive economic data from Sweden did not prevent the krona from having its worst week against the euro since August. We forecast the currency to fall further, and to underperform its Norwegian cousin, over the course of the year. Next week, GDP data from Norway are set to confirm that growth in the mainland economy slowed at the end of last year, and we expect the Central Bank of Iceland to resume its easing cycle.