SEK TALKING POINTS – USD/SEK, SWEDEN UNEMPLOYMENT RATE, BREXIT VOTE
Swedish Krona watching unemployment charge
UK will vote on extension of Brexit deadline
USD/SEK additionally watching US financial information
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USD/SEK could also be in danger from all sides because the US prepares to unveil new house gross sales, Krona merchants look ahead to Sweden’s unemployment charge information, and the UK votes on extending the March 29 Brexit deadline. Whereas unemployment in Sweden has been declining and not too long ago reached its lowest level since July 2018, the economic system continues to underperform relative to economists’ expectations. In the meantime, the OMX has climbed.
In February, Sweden’s CPIF got here in 1.9 %, falling in need of the median analyst estimate at 2.zero and much under the central financial institution’s forecast of two.four. The Riksbank said at its final two coverage conferences that it intends on elevating charges as soon as this 12 months. Nevertheless, concern over rising family indebtedness and exterior dangers make it more and more troublesome for policymakers to justify elevating charges at a time when the economic system is so weak.
Within the US, new house gross sales are scheduled to be launched which can transfer the Dollar earlier than markets get jittery main as much as the Brexit vote. The Home of Commons will resolve on whether or not they need to prolong the March 29 deadline so as to safe a plan that may attraction to the vast majority of lawmakers. The result might ripple out into world monetary markets and shift investor’s priorities from chasing yields to preserving capital.
If the result elicits a robust haven-demand, the cycle-sensitive Krona will seemingly fall as merchants flock to the anti-risk US Greenback. As a result of there are such a lot of components that will affect the pair and push it any given route, it’s troublesome to gauge the precise magnitude every aspect can have on USD/SEK. Main as much as every respective occasion, liquidity could also be skinny as merchants wait to see the outcome earlier than executing their trades.
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SWEDISH KRONA TRADING RESOURCES
— Written by Dimitri Zabelin, Jr Forex Analyst for DailyFX.com
To contact Dimitri, use the feedback part under or @ZabelinDimitrion Twitter