BUZZ-COMMENT-Nordics vulnerable to economic gaps and a strong dollar

Jan 21 (Reuters) - A deterioration in broader market risk sentiment and growing expectations of a strong dollar through 2025 could weigh heavy on the Swedish and Norwegian crowns.

The U.S. economy is set to outperform Europe, and a more stubborn inflationary backdrop will limit scope for the Federal Reserve to cut rates this year. Core U.S. prices could become entrenched around the 3.0% level and inflation expectations reflect this view.

For Europe, there are growth concerns and central bank stimulus has happened but more may be needed. The European Central Bank is seen to maintain its dovish stance. In Sweden, the Riksbank is expected to maintain its easing bias despite new inflation concerns and the Norges Bank is likely to deliver its first cut in rates at its March policy meeting.

President Donald Trump's pro-growth policies could lead to a bigger economic gap between the U.S. and Europe and underpin further dollar gains.

USD/SEK has been on a bear run since peaking at 11.3219 on Jan. 13 but a strong rebound on Tuesday from levels just ahead of a thick and rising Ichimoku cloud could be the precursor to a resumption of the long-term bull trend.

USD/NOK has bounced off the 10-week moving average, 11.2837, and threatens to resume its own long-term bull run.

Overall, a strong dollar is likely to see EUR/USD head towards parity and for weakening trends for the SEK and NOK to shape the early months of 2025.

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(Peter Stoneham is a Reuters market analyst. The views expressed are his own, editing by Ed Osmond)

((peter.stoneham@thomsonreuters.com))