EURSEK positioned for measured decline – BNPP

Sam Lynton, FX Strategist at BNP Paribas, recommends positioning for a measured grind downwards in EURSEK over the coming months.

Key Quotes

“The positive macroeconomic story remains in place, but the market is short the SEK and not pricing in enough for the Riksbank.”

“We think any SEK gains will only be gradual, due to Riksbank FX sensitivity. We therefore recommend ratio put spreads.”