SEB write "trade-weighted SEK is at a...........>

SEK: SEB write "trade-weighted SEK is at a stronger level now vs when the

covid-19 crisis started. The huge handicap of a meaningful and negative interest

rate spread vs the rest of the world is almost gone, companies are not facing

negative interest rates in Sweden and FX hedging has become less expensive and

attractive as the krona is undervalued. Swedish pension companies remain with a

significant USD exposure which is one of the prime drivers for a stronger SEK

should they decide to lower their exposure to the dollar. So far Swedish growth

is holding up better vs peers thanks to the relatively liberal strategy for

handling the covid-19 crisis - growth however will plummet in Q2 but the decline

will be less deep compared to the countries that have been in full lock-down. It

will also be very interesting as we get data to see if Sweden has had more

people already infected by the virus. That's seems reasonable is lessens the

risk for a major second wave of virus outbreak. All these factors point in the

direction of a stronger SEK in the weeks to come."