NOK/SEK: Attractive levels for entering longs – Nordea

NOK/SEK is at record low levels. Analysts at Nordea explain how to trade the pair.

Key quotes

“The question marks surrounding a long NOK/SEK position is related to short-term uncertainties in oil and equity markets. So if your perspective is less than 1-2 months option strategies could make sense. We like 6m risk reversals, for instance, call strike at 1.0 and put strike at 0.917 as a zero-cost alternative.”

“In the medium-term, we are bullish the NOK versus the SEK. As such, if one can weather through some potential short-term turbulence we find the current levels attractive for entering NOK/SEK longs.”