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In this publication: We close our SEK long versus EUR with a total loss of 2%. The euro has been more resilient and Swedish CPI lower than expected. So we wait and see for now161011-stop-loss-eursek.pdf (150 KB)
Stop loss hit EUR/SEK
On 16 September 2016 we opened a SEK long versus EUR at 9.56. Unfortunately our stop loss at 9.75 was hit today. The total loss was 2%. Firstly, the euro has been more resilient because of talk of a possible ECB taper. We think expectations for an ECB taper are overdone and continue to expect an extension. In addition, Swedish CPI for September came in far below expectations. This has dampened our expectations that the Riksbank may adjust its forward guidance this year to signal an earlier rate hike in 2017. We stay on the sidelines for now to see the further developments.