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26 Jun 2013
Flash: NOK and SEK stand out amidst USD rush - Danske Bank
FXstreet.com (Barcelona) - Danske Bank analysts note that in the Scandi sphere, both NOK and SEK stood out on Tuesday as strong performers amid a general USD rush.
They comment that they could see NOK go stronger still if we are right that today's unemployment data will prove strong, and also advise investors to also keep an eye on weekly NOK positioning data from Norges Bank. They write, “On the whole, we think the market has got a little bit ahead of itself following the dovish Norges Bank last week. Although we still see both EUR/NOK and EUR/SEK trading below the current spot level in 12M time, we acknowledge that the levels may prove a bit too optimistic on the Scandi currencies given the now less upbeat global outlook due to the recent acceleration in Fed/China/commodities/EM fears.”
They comment that they could see NOK go stronger still if we are right that today's unemployment data will prove strong, and also advise investors to also keep an eye on weekly NOK positioning data from Norges Bank. They write, “On the whole, we think the market has got a little bit ahead of itself following the dovish Norges Bank last week. Although we still see both EUR/NOK and EUR/SEK trading below the current spot level in 12M time, we acknowledge that the levels may prove a bit too optimistic on the Scandi currencies given the now less upbeat global outlook due to the recent acceleration in Fed/China/commodities/EM fears.”