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Morgan Stanley recommend selling USD/NOK at.....>

NOK
NOK: Morgan Stanley recommend selling USD/NOK at NOK8.63, with a target of
NOK7.80 and a stop at NOK8.82.
- Morgan Stanley reason that "Scandinavian currencies should benefit from an
improvement in global growth, particularly from China as this bodes well for
broader European growth as well. Norwegian data stand out within the G10 in that
they remain firm - the unemployment rate continues to fall while core CPI
meaningfully exceeded expectations. The result is likely to be continued hawkish
rhetoric from the Norges Bank, suggesting interest rate differentials moving
increasingly in NOK's favor. Oil prices staying firm would also be NOK
supportive. USD weakness also looks increasingly likely as global growth
rebounds and investors increasingly reallocate capital abroad. A key risk to the
trade is Norwegian data softening, leading to the Norges Bank taking a more
dovish policy stance."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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