TD sold EURSEK on Monday at 10.2830,.......>

EURO-SEK: TD sold EURSEK on Monday at 10.2830, with a target of 9.984 & a

stop-loss at 10.47. TD believe that the "shift in trade rhetoric has squashed

the Q1 macro story. This has left market participants left to trade in very

short-term ranges with positioning likely the major guide. In this regard, we

think SEK is one of the majors that was caught up in the repricing of the

reflation trade following the pullback in equities and the softer data momentum

out of Europe. The Riksbank has not helped after it hit pause at the start of

policy normalization. That said, alongside CAD, SEK is the one G10 currency that

screens cheap across our short-term dashboard. The first chart shows our

positioning proxy that underscores the shift in sentiment towards SEK. Finally,

the SEK is the lone G10 currency that looks cheap our macro PCA framework. The

SEK is correlated to reflation, but price action has overshot the implied

correlation."