Nordea have added a long NOK/SEK position.....>

FOREX: Nordea have added a long NOK/SEK position to their holdings, based on:

- i) The Riksbank now has a more aggressive rate cycle planned in the rate path

than Norges Bank. Who wants to bet that Stefan Ingves will out-hike Oystein

Olsen? We certainly won't.

- ii) Relative PMIs should continue to support a higher NOK/SEK. While PMIs in

Sweden and Norway are volatile (and unreliable on a monthly basis), we tend to

think that the bigger trends in these PMIs matter. If the Norwegian

manufacturing PMI just stays at 55 (that last reading was above 60), while the

Swedish Manufacturing PMI is unchanged at 52.5 (we see downside risks to that

view), then the average PMI reading should support at re-break of 1.10 on the

topside in NOK/SEK.

- We also like the technical picture in a long NOK/SEK position from levels just

above 1.0750.