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
EUR/USD
Bullish
Oil - US Crude
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
Wall Street
Bullish
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
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • Heads Up:🇷🇺 Inflation Rate YoY (JUL) due at 13:00 GMT (15min) Expected: 3.4% Previous: 3.2% https://www.dailyfx.com/economic-calendar#2020-08-06
  • 🇺🇸 Initial Jobless Claims (01/AUG) Actual: 1,186K Expected: 1415K Previous: 1434K https://www.dailyfx.com/economic-calendar#2020-08-06
  • 🇺🇸 Jobless Claims 4-Week Average (01/AUG) Actual: 1,337.75K Previous: 1368.5K https://www.dailyfx.com/economic-calendar#2020-08-06
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.82%, while traders in US 500 are at opposite extremes with 76.11%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/8lwdCO7f8U
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.29% 🇯🇵JPY: 0.08% 🇨🇭CHF: 0.00% 🇦🇺AUD: -0.15% 🇪🇺EUR: -0.18% 🇨🇦CAD: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/gpL0CBYyXO
  • Heads Up:🇺🇸 Continuing Jobless Claims (25/JUL) due at 12:30 GMT (15min) Expected: 16720K Previous: 17018K https://www.dailyfx.com/economic-calendar#2020-08-06
  • Heads Up:🇺🇸 Initial Jobless Claims (01/AUG) due at 12:30 GMT (15min) Expected: 1415K Previous: 1434K https://www.dailyfx.com/economic-calendar#2020-08-06
  • Heads Up:🇺🇸 Jobless Claims 4-Week Average (01/AUG) due at 12:30 GMT (15min) Previous: 1368.5K https://www.dailyfx.com/economic-calendar#2020-08-06
  • BoE's Bailey says there is an awful lot of risk to the downside in forecasts $GBP
  • 🇧🇷 Unemployment Rate (JUN) Actual: 13.3% Expected: 13.2% Previous: 12.9% https://www.dailyfx.com/economic-calendar#2020-08-06
Krona Drops Post-Riksbank, But Looks Set to Maintain Strength

Krona Drops Post-Riksbank, But Looks Set to Maintain Strength

2017-02-15 12:21:00
Oliver Morrison, Analyst
Share:

Talking Points:

- Riksbank keeps rates on hold as expected at -0.5%.

- But the central bank dissapoints Krona bullswith an unexpectedly dovish view on interest rates.

-EURSEK and USDSEK spike, but don’t hold gains, suggesting SEK trend will stay strong.

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

Sweden’s Krona fell against the Euro and the Dollar after the country’s central bank, the Riksbank, kept rates on hold at -0.5% at its February policy meeting and left intact a government bond-buying program set to continue until June.

The decision to hold pat was expected, but the bank maintained a very dovish tone, stressing the chances of further rate cuts despite the strength of the Swedish economy, which took markets by surprise and put the currency under selling pressure.

The bank’s December meeting gave Krona bulls some hope that the Riksbank might climb down from its ultra-accommodative policy stance. At that meeting, the Riksbank extended its asset purchase programme and said that it will buy additional SEK 30 billion in bonds by mid-2017. But the minutes published in January revealed that three of six board members spoke out against giving an outlook that signalled another rate cut, and that Governor Stefan Ingves was forced to use his decisive vote to push through an extension of asset purchases.

But the bank maintained a very dovish tone today again in its February policy meeting, repeating a threat to intervene in FX markets should a strong krona, which has strengthened more than forecast since the December meeting, jeopardize efforts to reach its inflation target.

“The krona exchange rate continues to create uncertainty about the development in inflation,” the central bank said. “Since December, the krona has been clearly stronger than expected. This rapid appreciation is not expected to continue, however.”

It said there “is still a greater probability that the rate will be cut than that it will be raised in the near term” and said it sees “slow increases” in rates that “will not begin until the start of 2018.” It added: “For inflation to stabilise around 2%, a continued strong level of economic activity and a krona that does not appreciate too rapidly are required. Monetary policy therefore still needs to remain expansionary.”

EURSEK and USDSEK both quickly spiked on the news, although they soon retreated from the highs, indicating that the overall trend of an appreciating SEK isn’t set to change. EURSEK currently trades at 9.4528, a small rise of 0.0046 on the day. USDSEK trades at 8.9511, a rise of 0.0183 on the day.

EURSEK 15-Minute Chart (February 15, Intraday)

Krona Drops Post-Riksbank, But Looks Set to Maintain Strength

--- Written by Oliver Morrison, Analyst

To contact Oliver, email him at oliver.morrison@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

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.