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On Thursday evening Morgan Stanley placed an....>

SEK
SEK: On Thursday evening Morgan Stanley placed an order to sell USD/SEK at
SEK9.0900, with a target of SEK8.7000 and a stop at SEK9.2100.
- MS reason that "SEK looks poised to gain further. European FX has been
oversold as investors have become increasingly bearish on the European economic
and political outlook, pushing European currencies into oversold territory. SEK
should gain as European economic data rebound from the current temporary
slowdown, German and Italian political risks subside, and the ECB and Riksbank
continue their hawkish tones. Positioning in the USD has become overbought,
suggesting further risk of a pullback. SEK also remains cheap relative to its
long-run REER while USD looks overvalued. A key risk to the trade is that
European economic data continue to worsen, weighing on European FX, including
SEK."
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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