As we start off the new year, we see that the Scandinavian kroner continues to make gains against the US dollar as positive fundamental indicators have boosted confidence in the global economic recovery. While the Scandinavian currencies have also moved up vs. the euro, the gains have been slightly more muted due to the 16-nation currency's appeal to risk taking investors. Positive US employment data released last week has actually weakened the dollar against the kroner, as investors abandoned the safe haven greenback. The last week has seen the USD/NOK and USD/DKK pairs fall close to 1300 pips. Meanwhile, the USD/SEK has tumbled some 1500 pips. Against the euro, none of the Scandinavian currencies have managed to gain more than 500 pips over the last seven days. This week, traders can anticipate heavy volatility among the Scandinavian pairs ahead of the release of this month's US Non-Farm Payrolls figure. The Non-Farm indicator is widely considered the most significant economic event of the month, and heavy market activity is expected. Should the payrolls number come in above analyst predictions, traders can expect the kroner to extend its bullish trend against the dollar. At the same time, a positive Non-Farm's figure is likely to increase demand for the euro, causing the kroner to drop against its euro-zone counterpart.

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