In this piece we conduct a 'deep dive' into the Scandi currencies within the Danske G10 Medium-term Valuation (MEVA) model.
EUR/SEK: MEVA captures SEK movements well and model deviations have been corrected relatively swiftly in the past . Currently, MEVA suggests that the cross is close to 'fair'.
EUR/NOK: We suggest care in using MEVA for NOK as Norway is different from G10 in general due to the importance of the oil industry and the Petroleum Fund mechanism. EUR/NOK likely not undervalued despite MEVA suggestion.
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