Sweden’s long hot summerReport Date: 5th September, 2018
Sweden’s general election should allow the anti-immigrant Sweden Democrats to take a further step forward. But the centrists will rally round to ensure the populists remain confined to opposition. The resulting decline in political risk, alongside quickening inflation and the start of tightening cycle by the Riksbank with autumn, should rekindle support for the Swedish krona. We’d be long SEK against a basket of euro and US dollar.
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