Remain Supported To Outperform G10

The NOK and SEK outperform the G10 today, with EURSEK 0.5% lower and EURNOK 0.8% lower. However, both crosses remain within yesterday's ranges.

• The NOK was supported by the firmer brent crude backdrop this morning and has continued to strengthen against the EUR even as crude futures moved away from intraday highs (albeit still 1.2% higher on the day).
• EURSEK's moves lower sees the cross return to trade below the bull channel top drawn from the Dec 22 low.
• Analysts from Danske bank note that this week (2 - 5 April) sees one-third Swedish dividends paid out (SEK99bln total, with SEK payout to international investors totalling SEK32bln and net max SEK selling of SEK23bn over the week). In theory, this may imply some repatriation flows out of the SEK.
• However, they stress caution with this argument: "We recommend to monitor dividend-heavy days…but stress that reinvestment is often default, thus the flow stories should not be exaggerated".
• Tomorrow's regional calendar is light, with more interest in the Riksbank's March meeting minutes and Swedish/Norwegian services PMIs on Thursday.