FXStreet – the appreciation of The Euro compared to the US Dollar is a positive signal effect on the European G10-currencies. So the strong Euro is likely to initiate a change of tide in Europe, which should lead to the FX-universe upgrade (even the battered currencies such as the Norwegian Krone (NOK) and the British pound (GBP).
For European currencies, and the risks on the upper side, there are currently than the other way around, especially against the Greenback. This is the Basis for a stronger EUR/USD exchange rate . In addition, the Euro exchange rate stands at 12 percent below its fair value.
Short positions on the USD/SEK should run very well, probably even better than long positions on the EUR/USD. The reason for this is not a satisfactory extension of the purchase programme, the Swedish Central Bank. The EUR/SEK is, in addition, in the medium term overrated. Our fair value is 9,00.
** FXStreet News Editorial, FXStreet**