Epstein Secrets

R going forward. Sweden In December, the Riksbank left its rates profile broadly unchanged, suggesting rates will remain sub-zero until end-2017. Norway Norges Bank surprised with a rate cut in September. We expect a final further 25bp rate cut this quarter. Denmark Denmark was forced to cut its d

on hold at its last meeting with rates well below zero. We see further gradual depreciation of CHF vs. EUR going forward. Sweden In December, the Riksbank left its rates profile broadly unchanged, suggesting rates will remain sub-zero until end-2017. Norway Norges Bank surprised with a rate cut in Se

together, the dilemma of balancing the risk of domestic overheating versus excessive currency appreciation and subdued spot inflation is something Norway shares with a number of EM economies and also to a lesser extent with neighboring Sweden. However, Norway's dilemma is further reinforced by the l

Page 11 EFTA01464446 16 May 2013 FX Blueprint: Dashing Buck Meanwhile in Sweden imported deflation is dragging headline CPI further below the Riksbank's projection (in April -0.5% YoY vs the -0.2% projection). For the inflation targeting Riksbank this should mean further policy easing, and it mig

w DailiGne Mel Ihnergraf, Ptt Figure 2 peaks 250% Heal house pea, r 30- vest moving average especially in comparison with pre-crisis —Sweden Norway Canada - Ausualia —UK 100% 2001 2003 2006 2007 2009 2011 2013 2.016 2017 Arnett (*slid* *setsv Amax LI 1 Figure 4: Strong servi

s inflation as being persistently stronger than previously forecast. To sum up, we remain long SEK against EUR and CHF in anticipation of a hawkish Riksbank turn by year-end. While hardly contrarian, our impression from recent client marketing is that SEK longs are far less extended than in the summer.