How Significant is the Swedish Debt Office’s SEK Long.

JPMorgan put out a note late Friday following the announcement by the Swedish Debt Office that it will take a long position in SEK against the euro up to the tune of SEK 7 billion. The note goes through various issues related to this announcement in turn, but the bottom line is that the SNDO announcement by itself should not enough to change the macro narrative for SEK, that soft growth momentum in the region and the Riksbank’s reaction function is likely to prevent SEK cheapness from correcting materially. JPM clients can read the full note of MorganMarkets.