HALISTER1: Sell EUR vs SEK on Riksbank, Sweden Data Improvement: Danske

Sell EUR vs SEK on Riksbank, Sweden Data Improvement: Danske

(Bloomberg) -- EUR/SEK is trading too high, primarily driven by recent Sweden data disappointments; sell EUR/SEK as Riksbank will shadow but not ease more aggressively than the ECB, and Sweden data will probably turn around, Danske Bank senior analyst Stefan Mellin writes in a client note.
  • Sell EUR/SEK at 9.5688, target 9.40, with a stop loss at 9.65
  • Riksbank is trying to shadow the ECB, but are in a relative tapering mode
  • Riksbank will not “out-ease”, nor will Swedish QE as a share of GDP outpace, the ECB
  • Recent SEK under-performance has been driven by weaker-than- expected Sweden data; data surprises are mean-reverting, and Danske says it is only a matter of time before data surprises to the upside
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
1083Z SS (Sveriges Riksbank)

People
Stefan Mellin (Danske Bank A/S)

To de-activate this alert, click here

UUID: 7947283