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Morgan Stanley went short EUR/NOK at.......>

EURO-NOK
EURO-NOK: Morgan Stanley went short EUR/NOK at yesterday's NY close with a
target of NOK9.3000 and a stop at NOK9.7700.
- Morgan Stanley see "NOK supported by higher oil prices and strong underlying
economic activity. Norway's economy is relatively closed (apart from the oil
sector) compared to Sweden's, which should help insulate its economic
performance from a temporary slowdown in core Europe. The upside surprise in
underlying CPI reveals that the domestic economy is performing well. The EUR
outlook is more clouded. It may take several weeks for faster Chinese growth to
pass through to the Euro area. An uptick in foreign corporate issuance suggests
that corporations are leveraging low Euro yields to effectively engage in carry
trades by moving funds out of the Euro area to fund home operations or profit
from yield differentials - keeping EUR low. A risk to the trade would be lower
oil prices or an improvement in market sentiment on the Euro area's economic
outlook."
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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