SEK the main benefactor from solid Q1 for Eurozone IP - BNPP

Research Team at BNP Paribas, expects French, Italian, and German industrial production data on Tuesday to confirm a solid quarter for industrial production in the Eurozone.

Key Quotes

“While the data will signal that activity expanded for the quarter as a whole, our economists caution that the data will likely be consistent with slowing momentum heading into Q2. In any event, we continue to view evidence of improved activity in the eurozone as unlikely to be particularly helpful for the EUR in the context of ongoing ECB QE. Our preferred currency to express a constructive view on industrial expansion in the eurozone remains the SEK, and we view the latest squeeze higher in EURSEK as setting up a potential opportunity to re-enter long SEK positions.”