Buy the US dollar against the Swedish krona if tonight's US election results are too close to call a clear winner, says Naeem Wahid of Bank of America-Merrill Lynch. The Swedish krona is highly correlated with equity markets, which will likely sell off if election uncertainty extends beyond tonight. The dollar reaction to an Obama win would be relatively muted since currency markets have already been pricing in his re-election through a dollar rally after nonfarm payrolls on Friday, he says. If Romney wins, Wahid recommends selling the US dollar against the Canadian dollar. USD/SEK last at 6.6872, largely flat on the day; USD/CAD at 0.9932, down 0.3%.
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