New Top Trade Pick: Short EURNOK, targeting 7.800
In Scandinavia, the news continues to strike an upbeat tone. Norway’s PMI rose above the expansionary 50-threshold to 53, following an upwardly-revised 48 reading – marking the highest level in over a year. Sweden’s purchasing managers’ index, too, edged higher to 52.2 from 51.3 (index, sa). The continued upbeat news in Scandinavia reinforces our view that the SEK and particularly the NOK are likely to outperform within the G10. Developments on the policy front should also be supportive: this week, the Riksbank is likely to highlight the positive tone to the recent news flow. Moreover, the bank’s concern on household indebtedness is also likely to lend itself to a mildly hawkish stance. Trading-wise, we have now put on a new short EURNOK trade recommendation targeting 7.800, with a stop loss of 8.130.
Read the full report: FX Daily
BNP Paribas