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EURSEK Through Resistance As Scandis Underperform Again

SCANDIS

Scandis are once again the G10 underperformers today, with EURSEK now through the November 14 high and currently 0.4% higher today. The October 31 high at 11.8422 represents the next resistance.

  • Comments from Riksbank Deputy Governor Floden (whose last meeting will be in May before Anna Seim takes his place on the Executive Board) this afternoon were broadly in line with sentiment from the March meeting minutes (i.e. positive inflation developments but the SEK remains a risk factor).
  • Otherwise, there has been little regional newsflow to note today.
  • EURNOK is also 0.5% higher today.
  • Yesterday, Danske Bank reaffirmed their negative bias for NOK in 2024: “We expect the close connection between EUR/NOK and USD rates (higher USD rates, weaker NOK) to continue as USD rates play an (even more) important role in determining the attractiveness of cyclically sensitive assets and hence NOK”.

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