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
EUR/USD
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
GBP/USD
Bullish
USD/JPY
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
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • RT @next_china: U.S., China chief trade negotiators spoke by phone on Saturday, Xinhua reports https://t.co/dMQtd0g4jY
  • The $AUDUSD and $EURUSD downtrend may prolong as traders counterintuitively buy into their descent. Meanwhile, the USD/CAD uptrend may accelerate on rising net-short bets. Get your market update from @ddubrovskyFX here: https://t.co/dlzJ31kf3f https://t.co/xp8P9MmCgb
  • As we head into next week, Cable is continuing to digest the massive leg higher last month, which at some point soon could mean another surge. Get your $GBPUSD technical analysis from @PaulRobinsonFX here: https://t.co/LJ42YhDe3X https://t.co/5hGwhGBpLB
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia from @DavidCottleFX here: https://t.co/E2hqoRdO7q https://t.co/urMnUCq4fn
  • RT @markets: White-hot pot stocks have flamed out in spectacular fashion https://t.co/3GsVsRyZaZ
  • What is the best time to trade #forex? Find out: https://t.co/M9R46r5ewa #tradingstyle https://t.co/gJ1QDrox67
  • #Gold prices may be given a tailwind from the FOMC minutes and escalating trade war risks if they fuel demand for anti-fiat assets amid expectations of additional Fed easing. Get your $XAUUSD market update from @ZabelinDimitri here: https://t.co/OJ7WUY9W7E $gld https://t.co/kBp3opzptm
  • Why should you set trading goals? How can it help regardless of what your #tradingstyle is? Find out: https://t.co/AYdD7ODlv1 https://t.co/G0ftVurNNN
  • Manning the penalty box today...i hope there aren't too many visitors https://t.co/1y81Li7laL
  • Do you think your #tradingstyle is of a #FOMO trader? Find out how you can turn that to #JOMO? Find out: https://t.co/79Q4pYdVEd https://t.co/S82AOd5AeP
Swedish Krona Watching Unemployment Data - NOK, SEK Eye Europe

Swedish Krona Watching Unemployment Data - NOK, SEK Eye Europe

2019-04-18 06:30:00
Dimitri Zabelin, Junior Currency Analyst
Share:

TALKING POINTS – SWEDISH KRONA, SWEDEN UNEMPLOYMENT, EUROZONE FLASH PMI

  • Swedish Krona traders are waiting for unemployment data
  • NOK and SEK are eyeing Eurozone flash PMI publication
  • How will Sweden unemployment impact Riksbank policy?

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

Swedish Krona traders will be eagerly waiting for the release of the country’s unemployment rate. Analysts estimate that unemployment will remain unchanged at 6.6 percent. According to the Citi Economic Surprise Index, Sweden’s economy has been underperforming relative to expectations, with unemployment rising from 5.50 percent in November to its current rate.

Yesterday, German Finance Minister Olaf Sholz spoke in Berlin and cut growth forecasts for 2019 down to 0.5 percent. Eurozone CPI was published with all indicators falling in line with expectations. Neither events induced any major market volatility. This indicates that perhaps markets had already priced in a less-than-optimal outlook from Sholz, and since CPI came in at expectations it left SEK and NOK shrugging.

Later in the day, Italy’s lower house will be debating the government’s economic forecast for growth in 2019. Current estimates show between 0.1-0.2 percent growth, down from the 1.0 forecast. The country recently entered into a technical recession with the broader regional slowdown lingering in the background. The risk of a Eurozone debt crisis with Rome at the center of it is a worrying (and not completely unrealistic) prospect.

Insight on the state of economic affairs in Europe will be further illuminated by the release of Eurozone Flash PMIs. Often viewed as a leading indicator, traders with exposure to European assets will be closely watching the publication. Nordic traders will also be keeping a close eye on the report due to the unique relationship Scandinavian countries have with their European counterparts.

Interested in learning more about European financial markets? Be sure to follow me on Twitter @ZabelinDimitri.

Riksbank policymakers will be closely monitoring unemployment data as the central bank approaches its rate decision on April 25. Officials have expressed concern and frustration over the stubbornly weak Krona and have been disappointed that inflation has been coming in under the central bank’s forecasts. The Riksbank is intending on raise rates in the latter half of 2019, though it is difficult to see how they could afford to do so.

If key inflationary indicators continue to disappoint, it could force policymakers to delay the rate hike and continue to keep rates at -0.25 percent. While an accommodative monetary policy has helped Sweden’s economy recover, it has also created unintended risks. Cheaper credit has also inflated the country’s OMX stock index, primarily due to investors taking advantage of cheap credit to inflate equities.

CHART OF THE DAY:

Chart Showing SEK index, OMX

NORDIC TRADING RESOURCES

--- 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.

DISCLOSURES

News & Analysis at your fingertips.