From Credit Agricole: EUR and the scandi......>

FOREX: From Credit Agricole:

EUR and the scandi currencies will likely remain the winners of the global

policy divergence trade. We expect next week's Eurozone inflation data as well

as the series of speeches by ECB officials ultimately to maintain the market

positioning for a QE taper announcement in October. We don't think that the EUR

has fully priced in the shift in the ECB policy outlook. We stick with our longs

in EUR/JPY and EUR/CHF. The scandi currencies should continue to outperform as

well. Indeed, markets will continue to trade SEK and NOK as higher-beta proxies

for the resurgent EUR. Next week's data out of Scandinavia should corroborate

the constructive outlook for NOK and SEK and we stick with our shorts in EUR/SEK

and EUR/NOK.