Sell EURSEK on Rallies – BNPP
Research Team at BNP Paribas, suggests that following an upward revision
to the Eurozone April manufacturing PMI, their economists see some
upside risk to the final estimate of the services PMI initially reported
at 53.2.
Key Quotes
“Stronger Eurozone
growth benefits its main trading partners such as Sweden, where economic
momentum has been particularly positive recently. Minutes from the
Riksbank’s April meeting will shed more light on the decision to extend
but also scale back QE. We don’t think the minutes will change the
market’s perception that the Riksbank is nearly done with policy easing.
We think risk of FX intervention remains, but only if EURSEK falls
rapidly to the 9.00-9.10 levels. We remain biased to sell into EURSEK
rallies. We forecast a move below 9.00 by yearend targeting 8.90 at end
Q4.”
