Market news
26.02.2024, 19:47

USD/SEK loses further ground despite hawkish Fed and mixed Swedish economic outlook

  • The USD/SEK trades at 10.306, shedding 0.14% in Monday's trading session.
  • The SEK is resilient and undervalued despite subpar economic fundamentals in Sweden, outperforming its G10 peers.
  • Governor Per Jansson flagged the possibility of a rate cut in May or June before a surge in inflation to 5.4% YoY.

The USD/SEK pair experienced a slight dip, registering a 0.14% decline in Monday's session falling to 10.306. Datawise, the US trades weak, due to poor housing data reported earlier in the session, but all eyes seem to be on high-tier economic activity and inflation reports from the US set to be released later in the week.

The Swedish Krona (SEK) has recently gained significant ground against the US Dollar, despite presenting a mixed economic outlook. In addition, surging inflation for January in Sweden may push the Riksbank to hold delay cuts to June, somewhat aligning with the Federal Reserve’s (Fed) stance.

In case the Swedish monetary policy aligns with the American, the health of each economy will dictate the pace of the pair. For this week, the US will report revisions on the Gross Domestic Product (GDP) from Q4 and Personal Consumption Expenditures (PCE) figures from January, which may affect the expectations on the next decisions from the Fed and potentially fuelling volatility on the pair. As for now, the odds of a cut in March and May seem to have been disregarded by the markets and instead pushed to June.

USD/SEK technical analysis

The daily Relative Strength Index (RSI) is currently positioned in the negative territory as it has been tracking lower than 50 while the Moving Average Convergence Divergence (MACD) histogram, with rising red bars, signifies a negative meaning that sellers are assuming control in the market, applying downward pressure to the pair.

In addition, the pair's underneath position relative to its 20, 100, and 200-day Simple Moving Averages (SMAs), reaffirms the bearish bias.

USD/SEK daily chart

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location