VIEW: SEB note that "the recovery for the SEK...>

SEK: VIEW: SEB note that "the recovery for the SEK has stalled recent days at

around the same levels seen in Feb before the global corona crisis. From the

weakest levels in March, the SEK has now taken back about 85 big figs vs. USD &

about 60 big figs vs. EUR. This does not only apply to the SEK, but we see a

similar development in other smaller currencies, which also weakened sharply in

Feb & Mar. Although we had exp. that the SEK would eventually reverse that

decline in Mar, the recovery has been much faster than we anticipated. As we

have previously written, the crisis has changed the long-term conditions for the

SEK for the better. Interest rate differences between Sweden & many other

countries are almost completely gone today, while the SEK is still undervalued

in the long term. The cost of "locking in" today's levels against, for example,

the USD is close to zero & it does not seem unreasonable that this opportunity

will be exploited by companies & fin'l institutions to reduce FX exposure.

Without major setbacks, if the global econ manages to rebound quickly & provided

tensions between the U.S. & China do not result in a new serious trade conflict,

there are good conditions for the SEK to continue to strengthen from today."