Both the Riksbank and Norges Bank left policy unchanged last week, in line with the forecasts. We would be looking for a meaningful move lower to engage in long positions ahead of weak Q1 data and an eventual Norges Bank cut in Q1 2016, which we currently envision.

The recent wave of migrant influx into Sweden is expected to support growth and inflation, according to the Riksbank's recent projections, and although we expect the Bank to retain a ''wait-and-see'' stance in the coming months.

We continue to find it hard for the Bank to justify much looser monetary policy. The data calendar in the next fortnight is unsurprisingly quiet.

Sweden's business confidence produced upbeat numbers 112.3 which is an increase from previous flash at 110.20.

While, consumer confidence at 98.7 which is again an increase from previous 96.4.

In the near term, we expect EURNOK to trade hand-in-hand with oil prices but think a correction lower is more likely than a break higher into year-end as it looks EURNOK overvaluation.

On the contrary, we continue to expect relative SEK outperformance among the European currency complex on solid economic fundamentals.