Forex Investment and Currency Trading

• Entry - 1.1740
• Target - 1.1900
• Stop Loss - 1.1460
  

Enter the long NOK/SEK position on the view that Norwegian interest rate markets currently significantly underestimate the potential for Norges Bank rate hikes and slightly over-estimate
the risk of Riksbank hikes. NOK/SEK fell this week in response to contrasting CPI reports. In Sweden, core CPI inflation rose to 3.2%, matching its 15 year high. In Norway, core inflation edged up to 2.4% - a six year high, but slightly lower than the consensus expectation (2.5%). News flow in both Sweden and Norway is very light over the coming week, but we continue to like this trade, which is currently on medium term interest rate dynamics.