Kit Juckes at Societe Generale highlights Sweden as the only G10 economy forecast to grow faster than the United States (US) this year, yet notes the Swedish Krona (SEK) is currently the weakest G10 currency. He argues SEK would be a strong buy candidate on a ceasefire, given its favourable growth outlook and recent underperformance against other G10 currencies.
Weakest G10 currency despite strong growth
“The market expects hikes from ALL the G10 currencies except the Fed, despite the fact that the only G10 economy that is forecast to have stronger growth than the US this year, is Sweden.”
“In fact, the Swedish Krona is the weakest G10 currency so far this year.”
“But what currencies should we buy if a ceasefire were announced? The SEK would be a strong candidate, given the growth outlook and the recent weakness.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/sek-growth-outlook-limits-downside-societe-generale-202604071441
