SEB's survey of leading FX trading..............>

SEK: SEB's survey of leading FX trading counterparties (published yesterday)

shows "that FX managers perceive the market to be record short SEK (largest net

short in 20-year survey history). Participants have also increased their own

underweight in SEK to the largest level since spring 2014. Fed policy is still

expected to be the most positive SEK driver while Swedish fiscal policy climbs

to second place. Liquidity remains the most negative driver for the SEK, but

Swedish house prices replaces risk appetite as the second worst driver. Most of

the Swedish corporates who responded have made changes to their liquidity

management due to the Covid-19 crisis but very few have changed or even plan to

change hedge ratios. Also, few institutions have or plan to make changes to

their hedge ratios. Median forecasts for EUR/SEK and USD/SEK indicate range

trading until end of June followed by successive SEK appreciation resulting in

EUR/SEK at 10.65 and USD/SEK at 9.60 at the end of the year."