Fade rallies in EUR/SEK – Danske Bank

Occasional up ticks in the cross remain a selling opportunity, according to Sverre Holbek, Senior Analyst at Danske Bank.

Key Quotes

“In the Scandies, both EUR/SEK and EUR/NOK have settled in higher ranges in a move partly driven by strengthened ECB forward guidance on rates making a 2018 Scandi rate hike less likely. Going into year-end, we like to play the Scandies on a tactical basis with not least a preference for selling EUR/SEK on spikes towards 9.80”.

“For the NOK, we have seen an expected stabilisation after the latest weakening but we still prefer to play the weak leg of the NOK in the weeks to come. Hence, given the late Friday drop in EUR/NOK we prefer to buy the cross for a move towards the 9.63 top from where we find strategic value in increasing NOK exposure from a 2018 perspective”.