Skip to Content
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
Gold
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
More View More
USD/SEK Jumpy as Riksbank Holds Rates, Boosts Bond Buying

USD/SEK Jumpy as Riksbank Holds Rates, Boosts Bond Buying

Nick Cawley, Senior Strategist

Talking Points

- USDSEK volatile on additional quantitative easing news.

- Central bank acts as inflation refuses to budge.

- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for next week on the DailyFX Webinar Calendar.

The Swedish central bank, Riksbank, has upped its quantitative easing program and will buy another SEK30 billion of bonds in in the first six months of 2017. In a statement following the decision, the central bank said that while increasingly strong economic activity creates the conditions for inflation to continue rising, “there are risks that can jeopardize the upturn in inflation.”

“Inflation has been lower than expected in recent months, and it is still uncertain how quickly it will rise going forward. It is difficult to know, for instance, how the krona exchange rate will develop in an environment where the ECB has extended its asset purchase programme and the Federal Reserve has raised its policy rate.” The central bank added, that “the krona will strengthen slowly in the period ahead.”

Chart 1: Forecasts for Swedish Inflation, GDP, Unemployment and Repo Rate

The Swedish Krona bounced around after the announcement and pulled back a little of its recent weakness. The Krona has weakened against the US Dollar in the last week from around 9.16 to 9.35 pre-announcement.

Chart 2: USDSEK 5 Minute Chart (21 December 2016)

--- Written by Nick Cawley, Analyst

To contact Nick, email him at Nicholas.cawley@ig.com

Don't trade FX but want to learn more? Read the DailyFX Trading Guides

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

DISCLOSURES