UBS - Fundamental Trade Recommendation - NOKSEK Is A Buy

UBS - "We buy NOKSEK at 1.1700 with a stop at 1.1585 and a target of 1.2000.
We expect investors to favour carry trades for the next few weeks until concerns mount about the US debt ceiling at the end of February.
Yesterday's dovish Riksbank minutes suggest that the central bank may be willing to cut interest rates again following December's 25bps cut to 1.00% if Swedish data worsens further in coming months. Investors should watch this week's CPI inflation release and unemployment data later in the month.
In contrast Norwegian credit growth continues to be strong with November data yesterday hitting 7.1%y/y. We expect there is little chance of Norges Bank considering lowering its 1.50% benchmark interest rate in the next few months. Instead Norway's central bank is committed to raising interest rates in 2013."

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