Goldman Sachs recommend getting short......>

EURO-SEK: Goldman Sachs recommend getting short EUR/SEK with a target of

SEK9.60, and a stop at SEK10.60.

- Goldman Sachs writes that "the economy in Sweden is operating well beyond

potential, inflation is on target, and yet policy remains accommodative. To be

fair, this has been the case for some time now, but we think "this time is

different" as the Riksbank's communication about normalization has become

decidedly more concrete in recent months. Our analysis suggests policymakers in

Sweden will ultimately need to tighten policy sooner and more aggressively than

their counterparts at the ECB, and we expect this will include some SEK

appreciation. While domestic policy should provide some protection, the main

risk to this trade is a more marked deterioration in Euro area sentiment, which

tends to weigh on SEK. This supplants our previous trade recommendation to go

long an equally-weighted basket of SEK and NOK, which we close for a potential

profit of 1.05%."