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SCANDIS: Diverging Fortunes Leaves NOKSEK 0.8% Lower

SCANDIS

Diverging fortunes amongst the Scandis leaves NOKSEK 0.8% lower today at ~0.9950. The cross has now erased all gains made since May 6, and eyes the 100-day EMA at 0.9938 next.

  • Past that level, a trendline drawn from the December 2023 low provides key support, crossing at 0.9915 today.
  • The latest weakness in Brent crude futures (currently almost -3.5% today) has weighed on NOKSEK, with today’s move below the parity handle likely accentuating the sell-off.
  • The SEK outperforms the G10 basket, with today’s strong manufacturing PMI (54.0 vs an upwardly revised 51.9 prior) supporting the narrative that the Swedish economy has bottomed out and is gradually entering a recovery.

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