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Scandis surge as short squeeze sees EUR/SEK...>

FOREX
FOREX: Scandis surge as short squeeze sees EUR/SEK drop the most since December
-After being one of the poorest performers of the year, SEK stood out today,
rallying against all other G10 as inline Swedish inflation numbers further
dented the market's net short position, prompting a near 1.4% drop in EUR/SEK.
-NOK was lifted in tandem, further buoyed by today's oil rally as WTI added
close to 3% on the greater risk of oil supply interruptions after Trump withdrew
from the Iran nuclear deal late yesterday. As a result, USD/NOK pulled back from
the multi-month high printed yesterday.
-JPY sat at the bottom of the pile after a wave of USD/JPY demand around the
Tokyo fix said to be associated with the Shire/Takeda $62bln M&A deal. As a
result, USD/JPY remains just below multi-month highs of Y110.04 and the 200-dma
at Y110.20.
-USD and EUR remain better sold as the spectre of another populist government in
Italy weighed on the single currency and as US PPI erred on the low side.
-Tomorrow, the focus turns to the Bank of England's rate decision and Inflation
Report as well as US CPI figures.

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