On February 25, Kit Juckes of Société Générale said in a report that the Short pound is an attractive deal against the Swedish krona given the weak outlook for the UK economy and the expected boost to the Swedish economy due to increased European defense spending. The UK's economic rise outlook has weakened recently and is likely to deteriorate further. At the same time, given that Sweden has long been an arms exporter, the krona could appreciate if Europe takes more responsibility for its own security. Sweden's defense industry accounts for a significantly higher share of GDP than most economies.
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Natixis: Differentiated economic outlook for the UK and Sweden, suggesting shorting the pound against the Swedish krona
On February 25, Kit Juckes of Société Générale said in a report that the Short pound is an attractive deal against the Swedish krona given the weak outlook for the UK economy and the expected boost to the Swedish economy due to increased European defense spending. The UK's economic rise outlook has weakened recently and is likely to deteriorate further. At the same time, given that Sweden has long been an arms exporter, the krona could appreciate if Europe takes more responsibility for its own security. Sweden's defense industry accounts for a significantly higher share of GDP than most economies.