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RBC Trade of the week: Long USD/SEK We're.....>

FOREX
FOREX: RBC Trade of the week: Long USD/SEK
We're set to hear several times from the Riksbank this week including twice from
Governor Ingves (once presenting the financial stability report and again at a
seminar celebrating the bank's 350th anniversary). SEK rallied last week on
Skingsley's comments ('October could be appropriate for a hike'), but she tends
to be more hawkish. With KIXI showing tradeweighted SEK up 3% since early May,
Ingves seems more likely to revert to his typical dovishness. We express that as
long USD/SEK with a tight stop, so the trade is implicitly short EUR/USD.

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