Morgan Stanley Fixed-G10 FX Strategy NOK, Stokk and Barrel-105814411

MJanuary9,202405:18PMGMTMorganStanley&Co.Internationalplc+IdeaG10FXStrategyEuropeDavidS.Adams,CFA+44207425-3518+44207425-9781NOK,StokkandBarrelStrategist+44207425-6841David.S.Adams@morganstanley.comWerecommendlongNOK/SEK.NorgesBankisslowingitsNOK+1212761-5287salesdramaticallyastheRiksbank'sSEK-buyingFX-hedgingDominicJKrummenacher+1212761-0407programmeisabouttoend,whileSwedishdataareunderperformingpeersmeaningfully.ExpectedratedifferentialsStrategistimplyNOK/SEKrisingto1.06.Dominic.Krummenacher@morganstanley.comCentralbankfootprintsareshrinkingrapidly:BoththeRiksbankandNorgesBankWantingLowhavebeenactiveinFXmarkets,thoughfordifferentreasonsandindifferentdirections–theRiksbankbuyingSEKandNorgesBanksellingNOK.BothflowsareStrategistsettoslowmeaningfully,removingasignificantNOK/SEKheadwind.Wanting.Low@morganstanley.comSlowingRiksbankSEKpurchases...Weestimatethaton-markettransactionsfromMorganStanley&Co.LLCtheRiksbank'sFX-hedgingprogramme,whereitbuysSEKversusUSDandEUR,shouldendinthenextweekortwo.TherecentrallyinSEKhasreducedthechancesAndrewMWatrousthattheRiksbankwillextendthehedgingprogrammeatitsFebruary1meeting.Strategist...meetslowingNorgesBankNOKsales:Meanwhile,NorgesBankhassloweditsAndrew.Watrous@morganstanley.comdailyaveragepaceofNOKsalesfromNOK1,400million/daytoNOK350million.Thisistwiceasfastadeclineasweweree...