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.

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
EUR/USD
Bullish
Oil - US Crude
Bearish
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
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/mAMhWbV6Jy
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/E9ZmJvqO0z
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/fqxw1AoKc1
  • Gold snapped a two-week losing streak but keeps price within the broader August downtrend. These are the levels that matter on the $XAUUSD weekly chart. Get your market update from @MBForex here: https://t.co/B3Jct6mIBD https://t.co/xTGIM2hRBv
  • $GBPUSD continues to move higher, despite Friday’s weakness, as vaccination hopes continue to fuel positive sentiment despite ongoing lockdown fears and downbeat UK data. Get your market update from @nickcawley1 here: https://t.co/S8UoHzOwFN https://t.co/qI6UZdggvM
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/6wxX6oQurn
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/w009tJEQZn
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/2AeO1AdD2M
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/INJz4NSugQ
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZX8cS https://t.co/qdrsi61CN8
USD/SEK, EUR/SEK Ripe for Bullish Breakout Ahead of Riksbank Rate Decision

USD/SEK, EUR/SEK Ripe for Bullish Breakout Ahead of Riksbank Rate Decision

Dimitri Zabelin, Analyst

Swedish Krona, Norwegian Krone, US Dollar, Riksbank – TALKING POINTS

  • Swedish Krona could fall on Riksbank rate decision, outlook on the economy
  • Coronavirus may push Sweden’s economy into biggest contraction since 1940
  • USD/SEK, EUR/SEK continuation patterns suggest a bullish breakout ahead

Swedish Krona Analysis Ahead of Riksbank Rate Decision

The Swedish Krona may fall if the Riksbank lowers the outlook for interest rates that were already expected to remain at 0 percent through 2021. Officials have expressed reluctance to cut rates below zero after monetary authorities had just recently pulled them from out of the sub-zero abyss. Having said that, the central bank has introduced unprecedented measures to counter the impact of the novel coronavirus pandemic.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Dimitri Zabelin
Traits of Successful Traders
Get My Guide

The central bank may expand its quantitative easing (QE) program beyond its commitment to purchase bonds in “the period March–December 2020 for a total nominal amount of up to SEK 300 billion”. Officials, most notably Riksbank Governor Stefan Ingves, have expressed trepidation in cutting interest rates below zero from the idea that other alternative credit-easing means could be more effective.

“Zero is already a low rate ... and 500 billion in free money is, in our opinion, more effective in the current situation than making small changes to the interest rateStefan Ingves.

Officials have also added several new debt classes to what was an originally purely government bond-purchasing program. The Riksbank recently announced that it will purchase bonds from municipalities amounting to a total nominal value of SEK 15 billion. They also will be buying commercial paper in the secondary market from non-financial corporates which will be required to havea credit rating equivalent to Baa3/ BBB- or higher”.

For more in-depth analysis on central bank policy, be sure to follow me on Twitter @ZabelinDimitri.

The unprecedented measures come as government officials warn of a 7 percent contraction 2020, making it the worst economic downturn since the 1940’s, surpassing the turmoil the Great Recession in 2008. The already-gloomy outlook is further muddied by expectations that the Eurozone economy – a magnet for Nordic exports – is anticipated to contract between 7-10 percent.

USD/SEK Forecast

USD/SEK recently cooled down from 19-year highs after the pair rose over 10 percent from the January swing-low at 9.3786. The pair – like other US Dollar crosses – appears to be a forming a bullish continuation pattern known as a Pennant. USD/SEK’s consolidation period may result in an upside breakout with the same magnitude as the spike leading up to the digestive interim.

USD/SEK – Daily Chart

Chart showing USD/SEK

USD/SEK chart created using TradingView

Forex for Beginners
Forex for Beginners
Recommended by Dimitri Zabelin
Forex for Beginners
Get My Guide

EUR/SEK Price Chart

Much like USD/SEK, EUR/SEK also appears to be in the formation of a bullish continuation pattern known as a Falling Wedge. This pattern – unlike the Pennant which has no clear directional bias in the congestive interim – has downward-sloping converging lines that compress the pair until it bursts above resistance. If this breach is met with follow-through, it could reinvigorate bullish sentiment and push EUR/SEK higher.

EUR/SEK – Daily Chart

Chart showing EUR/SEK

EUR/SEK chart created using TradingView

SWEDISH KRONA TRADING RESOURCES:

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

To contact Dimitri, use the comments section below or @ZabelinDimitriTwitter

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

DISCLOSURES