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2 Mar 2015
Return of risk appetite supports SEK, further upside possible – BAML
FXStreet (Barcelona) - The Research Team at BofA-Merrill Lynch explain that fundamentals and flows have made SEK look attractive, and see further upside potential for the currency.
Key Quotes
“A recent report that connected the dots between data and fundamentals in G10 FX ranked SEK at the top. Indeed, SEK was the only G10 currency that performed better than the USD last week, as Sweden’s GDP and other data surprised to the upside.”
“Our proprietary flows show strong real money demand for SEK, but suggest that hedge funds are left behind.”
“The weekly EPFR data up to February 25 reflect strong demand for both bonds and equities in Sweden—the strongest in G10 FX. Despite Riksbank’s recent mini-QE program, we see further upside for SEK as investors re-establish long positions.”
Key Quotes
“A recent report that connected the dots between data and fundamentals in G10 FX ranked SEK at the top. Indeed, SEK was the only G10 currency that performed better than the USD last week, as Sweden’s GDP and other data surprised to the upside.”
“Our proprietary flows show strong real money demand for SEK, but suggest that hedge funds are left behind.”
“The weekly EPFR data up to February 25 reflect strong demand for both bonds and equities in Sweden—the strongest in G10 FX. Despite Riksbank’s recent mini-QE program, we see further upside for SEK as investors re-establish long positions.”