News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Dow Jones Rebound May Lift APAC Stocks, Alibaba Earnings Miss https://www.dailyfx.com/forex/market_alert/2021/08/04/Dow-Jones-Rebound-May-Lift-APAC-Stocks-Alibaba-Earnings-Miss-.html https://t.co/RYUoBEiYyn
  • Listen to my thoughts about OCBC, UOB earnings via MoneyFM podcast with Ryan Huang this morning: https://t.co/3BP2EBSMMk https://t.co/GVolwG2wZ0
  • *Dalilah Still in awe!
  • and Daliah Muhammad too, both broke the word record Unreal!
  • If you’re not watching the #Olympics you just missed an incredible performance by Sydney McLaughlin, one for the ages
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.47% Gold: 0.14% Oil - US Crude: -0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/FJCwYfBqBn
  • The US Dollar seems to be losing its momentum against ASEAN currencies as of late. Could this be another top in USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:https://t.co/rVBKBuhhAb https://t.co/PSkSEjVnMC
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.51% 🇦🇺AUD: 0.12% 🇬🇧GBP: 0.06% 🇨🇦CAD: 0.03% 🇨🇭CHF: 0.02% 🇯🇵JPY: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Ph5lsHjmZL
  • RT @BrendanFaganFx: AUD/USD Analysis: Aussie Dollar Points Higher After Strong Chinese PMI Data $AUDUSD #Forex #Trading Link: https://t.c…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.63%, while traders in France 40 are at opposite extremes with 82.74%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/FD0WVipVhk
SEK Traders Now Turning Heads Away from Riksdag to Riksbank?

SEK Traders Now Turning Heads Away from Riksdag to Riksbank?

Dimitri Zabelin, Analyst

SEK TALKING POINTS – Riksbank, Sweden Gridlock, USD/SEK

  • Painful political gridlock in the Riksdag may finally have end in sight
  • SEK traders can fully focus on monetary policy, reduced political risk
  • How will SEK fare against backdrop of slower growth, Riksbank policy?

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

The end to Sweden’s unprecedented political gridlock is set to be confirmed tomorrow when Sweden’s parliament votes on Social Democrats leader Stefan Lofven as Prime Minister. This comes after he was able to secure a shaky but sufficiently supportive coalition this week ahead of his vote on Friday.

Initially, the political stalemate did not worry investors because Sweden – according to Riksbank officials – is generally viewed as a stable country, and therefore political risk was never a serious concern. However, as the crisis went from inconvenient to inconceivable, investors began to worry. However, those fears appear to be rapidly waning now that the formation of a government is likely to finally happen.

With domestic political risk now reduced, though not completely eradicated, investors can turn their attention more toward the Riksbank’s monetary policy. As revealed in the central bank’s December meeting minutes, policymakers intend on raising rates once in the latter half of this year.

First Deputy Governor Kerstin Jochnick spoke on the 15th, and while he positively remarked on Sweden’s inflation, he cited potential headwinds in 2019 that the Riksbank will be closely monitoring. Some of these risks include growth from abroad – considering Sweden is an export-driven economy this comes to no surprise – and concern over the strength of Europe’s economy. The latter has to do with the unique relationship the EU and Nordic countries share together.

If Lofven is indeed confirmed as PM this Friday, SEK will likely have a brief jump but may then resume its current downward trend. USD/SEK has been closing higher for six straight days in a row, rising approximately 1.70 percent. The pair closed above a key support at 9.0086 but appear to be losing steam and are now looking to close below the price level. If Lofven survives the vote, we may see the pair break below 8.9598 and possibly reach for 8.9094.

USD/SEK – Daily Chart

Chart Showing USD/SEK - Daily Chart

Click here to view my 2019 Swedish Krona Norwegian Krone outlook!

USD/SEK 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