Scandinavian Divergence: New long NOKSEK
The SEK has been under pressure after a soft raft of economic data, particularly its GDP and PMI report. While the currency has already lost nearly 2% in USD terms this week, continued softness in the data argues for moderation to the Riksbank’s hawkish stance and further SEK losses. Consequently, we have initiated a long NOKSEK trade recommendation targeting 1.1458. Concurrently, we have also taken profit on our quant-based short EURNOK trade for a 1.7% return.
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