CIBC FICC Strategy: Trade Recommendation – Buy NOK/SEK

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We entered 2021 anticipating that a broad reflationary bias would result in the NOK proving to be the continent’s top performer. As we move towards Q2, the Norges Bank is likely to be the first major central bank to hike (watch for a potential move as soon as September). The combination of positive domestic fundamentals allied to the boost from rising oil prices underlines why we see little reason to change our positive NOK conviction.

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