Dollar ended last week on a bullish footing and the positive $ momentum is seen continuing also this week. Euro weakess should continue (but 1.28/29 should be a relatively hard nut to crack), commodities and commodity currencies are on the defensive and will continue to be so, China equity spiralling lower, SEK will initially strenghten a bit but will be vulnerable to a correction around EURSEK 8.33/35, NOK on the other hand will continue to weaken…BONDS will be in demand. EURUSD a sell 1.3040/70, AUDUSD sustaining the 1.0150 break? EURJPY bear flag still valid, EURSEK down to 8.33/35 and up to 8.40, EURNOK still targeting 7.53/54, NOKSEK small pause likely but thereafter 1.1050/70, USDZAR soon at multiyear highs, EURHUF buy into the pause, BUNDS winter peaks in sight, S&P500 buyer’s keep on responding and OIL continues to sink.
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SEB