We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.33%, while traders in US 500 are at opposite extremes with 76.39%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/yX00FwBRaN
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.18% 🇨🇦CAD: 0.14% 🇦🇺AUD: 0.07% 🇳🇿NZD: -0.00% 🇨🇭CHF: -0.01% 🇯🇵JPY: -0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/4auhNzVWYV
  • Heads Up:🇧🇷 BCB Focus Market Readout due at 11:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-05-25
  • 🇲🇽 Balance of Trade Actual: $-3.087B Expected: $2.04B Previous: $3.398B https://www.dailyfx.com/economic-calendar#2020-05-25
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.32%, while traders in US 500 are at opposite extremes with 76.77%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Tha105cXZ5
  • Heads Up:🇲🇽 Balance of Trade due at 11:00 GMT (15min) Expected: $2.04B Previous: $3.392B https://www.dailyfx.com/economic-calendar#2020-05-25
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.73% Gold: -0.29% Silver: -0.85% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/enjCuKY7xE
  • $SPX faces pivotal resistance, while #FTSE 100 continues to trade in rangebound fashion. Get your #equities technical analysis from @JMcQueenFX here: https://t.co/JXLZIbXzrQ https://t.co/37cpFa4skw
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.21% 🇬🇧GBP: 0.11% 🇦🇺AUD: -0.03% 🇳🇿NZD: -0.05% 🇨🇭CHF: -0.06% 🇯🇵JPY: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/W8OTNI6e3n
  • 🇮🇱 GDP Growth Rate QoQ 1st Est Actual: -1.8% Previous: 1.1% https://www.dailyfx.com/economic-calendar#2020-05-25
Swedish Krona May Rise on First Riksbank Rate Hike in 7 Years

Swedish Krona May Rise on First Riksbank Rate Hike in 7 Years

2018-11-09 04:30:00
Dimitri Zabelin, Analyst
Share:

TALKING POINTS – KRONA, RIKSBANK, RATE HIKE, INFLATION

  • Krona is set to get a boost from anticipated December rate hike
  • Riksbank implementing gradualist approach, cautious undertones
  • Can the Krona’s jump be sustained with other European factors?

See our free guide to learn how to use economic news in your trading strategy!

Since the start of the tumultuous year, the Krona has been on a steady decline against the US Dollar. This in large part has to do with the strengthening USD that is being fueled by a hawkish Fed, combined with the Riksbank’s dovish disposition. The current repository rate stands at -0.50%.

Decline of the Krona

SEK/USD - Daily Chart

Note: This chart shows SEK/USD. Markets usually quote the Swedish Krona as USD/SEK

However, economic data has showed that inflation has picked up to levels conducive for a shift in policy. The bank’s target is to maintain inflation hovering around 2 percent, with August numbers showing a jump to 2.3 percent. The Krona rallied on the news as it increased the probability of a rate hike.

Administrative officials from the central bank are still debating on whether to hike rates in December or February. This would be the first rate hike in 7 years. The most hawkish member has been Deputy Governor Martin Floden who stated that he is “not fond” of the weak Krona, and will not welcome any large declines. He also remarked on the lack necessity of further upward pressure on the country’s inflation.

All these comments seem to suggest a strong inclination to raise rates in December. The markets’ priced-in outlook has gyrated wildly however, reflecting a host of potential spoilers that might derail tightening. Ongoing political gridlock that is currently gripping Sweden’s government is one of these.Uncertainty from abroad - including trade wars, turmoil in Italy and slow-moving Brexit talks – is also a contributing factor.

Furthermore, core inflation remains worryingly low at 1.044 percent as of September 30th. The prospect of slower future growth is calculated into the rate decision, with Floden remarking that there is a “rather small” danger of being late on rates.

The risk being that in the event of a crisis, the central bank can only lower rates so much until the impact becomes negligible. Raising rates now in order to counter higher than desired inflation and preparing for future stimulus measures may be the logic behind this decision.

TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.