The USD is going up for the 11th day in a row and continues to get new incentives for growth. The deals to BUY would be the most reasonable in the near future.
The upward trend continues, as expected. The dollar continues to strengthen against most currencies due to the rapid development in the US economy and the Federal Reserve's aggressive monetary policy. The Swedish Krona, devoid of such growth incentives, is forced to give way to a strong dollar, like other currencies, including the euro.
This week the dollar continues to receive support due to strong macroeconomic statistics exceeding investors' expectations. The services PMI index rose to its highest level for the last 21 years - to 61.6 pips in September. The composite PMI index of business activity also showed an increase to 53.9 pips. Moreover, data about employment in the private sector showed growth in the number of jobs by 230K, which is the highest for the last 7 months. The statement of the Fed Head about the possibility of further increases of the rate, based on the current economic situation, further stimulated the USD to strengthen.
The economy in Sweden is largely dependent on the situation in the EU, and is thus also in the stage of economic recession, as evidenced by the latest business activity indices. In particular, the services PMI index fell for the fourth month in a row to 56.6 pips, against the expected on the market 57. It should be noted that this is the lowest level since August 2017. The situation with the manufacturing PMI index is slightly better, but the growth of the index in September to 55.2 points, against 52.5 points in August, is still below investors' expectations.
Quotes are steadily approaching the psychological mark which can be indicated at the level of 9.20 SEK. This is the highest level for the last few years. At the same time, we continue to observe the strengthening of the dollar for the 11th consecutive day. Still, the USD will continue to receive support for sure in the near future. Therefore, despite the continuation of trading in the overbought zone, according to the Stochastic oscillator, the most optimal would be the deals to Buy, according to the trend.
