Stay long NOK/SEK – Danske Bank

Senior Analyst at Danske Bank Sverre Holbek suggested staying long in NOK/SEK for the time being.

Key Quotes

“EUR/NOK rose after the Norwegian inflation miss yesterday and edged higher through out the day; NOK/SEK also dropped markedly. The CPI release provides another reason to be cautious on entering longs”.

“We still prefer long NOK/SEK with some insulation against risk appetite as a means to play Scandi divergence; notably the Norwegian CPI disappointment yesterday moderates the case for a pick -up in Swedish (annual) inflation rates”.