Nordic & Swiss currencies to rebound from April’s falls

After depreciating against the euro in April, we think that the Swiss franc, Swedish krona and Norwegian krone will rebound, but for different reasons. Political risk could yet re-escalate in Europe and elsewhere, boosting demand for the safe-haven franc. We think that the Riksbank will move closer to tightening monetary policy, supporting the Swedish krona. And even if the Norges Bank cuts interest rates this year, as we expect, higher oil prices should put upward pressure on the Norwegian krone.