Tuesday saw Bank of America Research note.......>

SEK: Tuesday saw Bank of America Research note that "we are somewhat puzzled

about SEK's resilience. True, it is already very weak, we find SEK of the most

undervalued G10 FX. But we think SEK's rebound will likely wait a little longer.

First, we remain bearish risk, which seems to correlate well with SEK. Second,

SEK has been fairly illiquid during Covid-19. Third, we remain concerned about

data. Following Riksbank's meeting last week, SEK reacted positively. Taking

everything into account, as far as SEK is concerned, we fear the market risks

showing some complacency. From Riksbank's meeting, we would single out 2 more

points: first, the Monetary Policy Report mentions that a repo rate cut will

depend on several factors, making explicit that "these factors include the

development of the exchange rate". Elsewhere in the report, Riksbank notes that

"the exchange rate has weakened and thus contributed to counteracting the

tightening a little". Going forward, we see EUR/SEK moving towards 11.50 over

the coming period. We see SEK +ve risks attached to potentially more fiscal

measures. But we still see-non-trivial-negative SEK risks attached to a repo

rate cut."