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
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
Bearish
Gold
Bullish
GBP/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
USD/JPY
Bearish
More View more
Real Time News
  • British Pound Price Outlook: GBP/USD, GBP/JPY, EUR/GBP Key Levels - $GBPUSD poised to push higher after breaching key resistance. - $GBPJPY rebound struggling to break above the August low. - $EURGBP coiling up above key support https://www.dailyfx.com/forex/technical/home/analysis/gbp-usd/2020/10/22/British-Pound-Price-Outlook-GBPUSD-GBPJPY-EURGBP-Key-Levels.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $GBP https://t.co/Qr9Tl7Qse9
  • The US Dollar is once again losing ground against #ASEAN FX as $USDGD and $USDIDR may be readying to extend losses. Will $USDMYR and $USDPHP follow? - https://www.dailyfx.com/forex/technical/article/special_report/2020/10/22/US-Dollar-Technical-Forecast-USDSGD-USDIDR-USDPHP-USDMYR.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/olomq6jsAD
  • 🇹🇭 Balance of Trade (SEP) Actual: $2.230B Expected: $3.55B Previous: $4.35B https://www.dailyfx.com/economic-calendar#2020-10-22
  • Brush up your knowledge on trade-wars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/ZWaL6laTU5 https://t.co/MX68zib6BX
  • https://t.co/2ITVYWYrf4 https://t.co/PBzWTjcs05
  • Market Update $USD and $JPY slipping from session-high as the risk-sensitive $AUDUSD attempts to claw back lost ground #ASX200 continuing to storm higher while #gold, #crudeoil and #SP500 futures struggle to rebound from session-lows
  • Heads Up:🇹🇭 Balance of Trade (SEP) due at 03:30 GMT (15min) Expected: $3.55B Previous: $4.35B https://www.dailyfx.com/economic-calendar#2020-10-22
  • The Hang Seng Index shrugged off US election risks and erased some earlier losses. Will it attempt to break through a key resistance at 24,750 and open the room for further upsides? https://t.co/7yccetD8JA
  • Crude oil prices extend losses after falling 4% as sentiment soured. The API report showed an unexpected rise in US stockpiles, dragging the energy sector lower. Besides, fading hope for an immediate stimulus package and rising coronavirus cases also weighed demand prospects. https://t.co/X2om6N6jMZ
  • Wall Street Futures Update: Dow Jones (-0.72%) S&P 500 (-0.77%) Nasdaq 100 (-0.75%) [delayed] -BBG
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