• The EUR remains under pressure as the ECB's bond buying programme boosts liquidity and pushes down European yields.
  
  EUR/USD declined another 1.5 figure yesterday and dropped below 1.07 and while the cross looks increasingly oversold both technically and valuation wise, we could see further USD buying ahead of the FOMC meeting next week as the market positions for a more hawkish Fed.
  
  We target EUR/USD at 1.05 in 6M but we stress that risks are tilted to the downside relative to our forecast.
  
  
• We target EUR/SEK at 9.30 in 1M. As time goes by the current weak SEK, a global recovery and a better than previously expected Swedish growth outlook support a rebound in the fundamentally undervalued SEK. We target EUR/SEK at 8.90 in 12M.
   
• Yesterday the NOK weakened on the back of February's slightly lower core inflation print at 2.4% y/y (DBM: 2.4%, consensus: 2.5%). 
  
  Overall, the inflation number was in line with Norges Bank's projections in its December monetary policy report and as the inflation outlook was partly suspended by Norges Bank back in December, this will of course not affect the decision next week where we still look for a 25bp rate cut.
  
  EUR/NOK now trades close to our 1M forecast from 17 February at 8.65 but risk in our view remains on the upside for EUR/NOK, as lower interest rates could weigh further on the NOK in the near term.