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Barclays

FX Outlook 2026: Navigating the Turn

LIVE28 November 2025USD bearish
Back to Currencies

USD/SEK

European recovery beta

Bullish

BARC Forecast Path

Cross-Firm Forecast Comparison

Key Drivers

Manufacturing exposure
Riksbank policy
Housing market
European growth
Valuations

All Firm Targets (Dec '26)

GSBullish8.90
JPMBullish8.83
BARCBullish8.80
MSBullish8.75
MUFGBullish8.70
BofABullish8.65
DBStrongly Bullish8.50
INGBullish8.44

Key Issues for 2026

1.Manufacturing leverage to German spending
2.Riksbank nearing terminal rate
3.Rate sensitivity means housing recovery supports
4.Valuations attractive
5.Prefer NOK for yield but SEK for growth beta

Analysis Summary

SEK benefits from European recovery and rate sensitivity. Riksbank nearing terminal removes a headwind. Valuations cheap. Prefer NOK over SEK for yield advantage but both should appreciate meaningfully.