Scandi FX Volatility Monitor: Buy 2M EUR/SEK Call Spread

Published 11/06/2018, 01:57 AM
EUR/SEK
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Implied volatility has bounced back from Friday's low levels amid deteriorating risk appetite.

Overall, impl. vol trades at neutral/low levels with event risks related to the December central bank meetings fairly priced at this stage.

Given the current spot and vol. levels in EUR/SEK and not least the highly uncertain political situation in Sweden, we recommend buying a 2M EUR/SEK call spread as a potential new election combined with an already relatively aggressive pricing of a Riksbank rate hike in December could open up for a very messy period for the SEK towards year-end.

To read the entire report Please click on the pdf File Below..

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