– Risk appetite has surged after the latest (positive) NFP number and USD has strengthened on the contrary to its more common negative correlation with risk appetite.
– Speculators continued to reduce their FX exposure while favouring the USD ahead of most currencies except CAD and CHF.
– SEK was net bought by SEB clients last week but the speculative client category was fairly neutral.
– SEK is in a weak spot but is undervalued versus USD, EUR and NOK according to our short-term fair value models.
– When combining all quant indictors the strong trend in USD/JPY stands out.
Click here to read the full report: FX Ringside
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