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.

Free Trading Guides
Oil - US Crude
Wall Street
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
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
  • The trio of central banks overseeing the commodity currencies have already cut their main rates to all-time lows. Get your market update from @CVecchioFX here: https://t.co/OSUXrN5P3j https://t.co/3nwDel6e28
  • The tension from March continues to subside, allowing for the $USD to slide to fresh two-month-lows. Get your currencies market update from @JStanleyFX here: https://t.co/bRSRjUqg6Z https://t.co/Q35YpIZEd2
  • López Obrador hopes #USMCA will help tighten trade relationships between the US and Mexico. Get your currencies market update from @HathornSabin here: https://t.co/bZrUKSCGaS https://t.co/MZ7UoiWWRj
  • The $AUD may suffer as relations between Australia and China deteriorate amid dwindling growth prospects. Euro traders will be closely watching progress in talks about a €500b recovery fund proposal. Get your market update from @ZabelinDimitri here: https://t.co/LkEFJViPWY https://t.co/sofO135ElG
  • The US Dollar could rise against #ASEAN currencies such as the Singapore Dollar as US-China tensions seem to escalate. The Indian Rupee is also looking ahead of local 1Q GDP data. Get your ASEAN currencies market update from @ddubrovskyFX here:https://t.co/LkEFJViPWY https://t.co/ZGFaQQ3Hr2
  • The #Euro is the big driver here for DXY as it is 57% of the index. It is rising now and trying to break above the March 27 high at 11147. Get your $EURUSD technical analysis from @PaulRobinsonFX here:https://t.co/6gt3F9LuGP https://t.co/73SaL5AeXD
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/EIC9YqfTec
  • Anybody else think that casting directors in movies are some of the most underrated people when it comes to giving a film/series credit?
  • No https://t.co/EoBltaP17k
  • Crude #oilprices may face heightened liquidation pressure as the cycle-sensitive #commodity finds itself under the pressure of resilient resistance and a vulnerable, multi-week rising channel. Get your crude #oil market update from @ZabelinDimitri here: https://t.co/cGPX4qcOH1 https://t.co/0U4JMJVFuf
USD/SEK to Rise on Political Gridlock - Swedish Snap Election in Sight?

USD/SEK to Rise on Political Gridlock - Swedish Snap Election in Sight?

2019-01-15 03:00:00
Dimitri Zabelin, Analyst

TALKING POINTS – Riksdag, Swedish Election, Krona, EU

  • The speaker of the Riksdag will propose a third candidate for PM Wednesday
  • If four candidates are rejected it will trigger a snap election in three months
  • Continuing gridlock will begin to weigh more heavily on the Swedish Krona

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


Sweden’s parliament – the Riksdag – has been in a gridlock ever since the inconclusive election in September. Both the center-right and center-left bloc failed to gather enough votes to form a majority, and the third largest party is held by the Sweden Democrats (SD), a nationalist group with neo-Nazi origins.

All major parties have refused to cooperate with the SD’s, because to do so would destroy that affiliated party’s political credibility.

Parliament has so far voted down Ulf Kristersson of the Moderate Party and Stefan Lofven of the Social Democrats Party as PM candidates. This came after several failed attempts to form a government by the aforementioned and Annie Loof of the Center Party.

The Riksdag has a system that is called negative parliamentarism, where a PM candidate does not need a majority to vote for him/her but rather a majority to not vote against him/her. In this regard, parties can show passive support by abstaining. Why this is important to know is last week, the Center and Liberal parties agreed to offer passive support to Lofven in exchange for him adopting center-right policies on tax and labor reform. The agreement also stipulated that Lofven kick the former communist Left Party out of his coalition.

Understandably, the ousted party took the news poorly, and the leader Jonas Sjostedt stated that he cannot accept having no say in policy. The Left Party, along with the SD’s, Moderate Party, and Christian Democrats will all almost certainly vote against Lofven as PM if the Speaker recommends him on Wednesday to parliament. This would be the third strike out of four that Sweden’s constitution allows before a snap election would take place within three months. The vote for the candidate will take place Friday.

If he is rejected, the Speaker announced the next vote will be held on January 23 or possibly 25. The fourth candidate – if the third fails – will be revealed early next week. It will likely be Kristersson If a snap election is held, the Sweden Democrats are more likely to outperform in the second election than the one in September. This would give them even more leverage in parliament than they have now, and that would almost certainly exacerbate the political crisis.

As I had expected last year, the danger behind political fragmentation and gridlock is it can lead to parties adopting policies that are an ideological deviation from political group’s placement on the political spectrum. This inevitably leads to unpredictable economic agendads that will likely affect monetary policy.

Right now, in Sweden, there is a leftist caretaker government in power that is run by a PM who lost a vote of no confidence and had a center-right budget passed in the parliament. And now, he is looking to form an informal coalition with center-right parties, while simultaneously threatening to split the Moderate-led Alliance coalition that has existed for over a decade.

The lesson behind Sweden’s parliamentary crisis is that it may be the writing on the wall for what the world might see in the EU Parliamentary elections this year. The only difference is the EU elections will affect far more people, and the consequences will be more grave.


As the crisis worsens – amid broader concerns of slower domestic growthUSD/SEK will likely climb higher. Riksbank officials and investors who initially showed little concern over the political crisis – because they generally view Sweden as a stable country – are now becoming increasingly worried of the potential economic impact.

USD/SEK is reaching toward a key support range that if accessed and subsequently broken could open the door to greater upward movement. The pair for the time being are temporarily trading between 8.8469-8.9598, but only in the short term.

USD/SEK – Daily Chart

USD/SEK to Rise on Political Gridlock - Swedish Snap Election in Sight?

USD/SEK will likely have a prosperous year ahead given the potential obstacles the global economy faces in 2019 along with gloomier outlooks for growth in the Nordics.

Click here to see my outlook for the Swedish Krona and Norwegian Krone!


--- 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.


News & Analysis at your fingertips.