I've been extra curious on SEK over the last couple of months as it has outperformed G10FX peers, only the NOK has been able to track it closely. EUR/SEK has fallen around 5.5% since the beginning of the year, USD/SEK has dipped almost twice as much. Seems like the high-beta euro trade kicked in.
However, I'm warning traders over the potential for SEK longs to continue to perform. Alternative market contacts have noted profit taking in the krone, with special attention to above average systematic flows on Tuesday.
There is a risk to potential downside in EUR/SEK as contacts noted CTAs adding to SEK longs, 10.80 was rejected but further tests and breaks could see CTAs chasing momentum lower
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