The rates over the past 6 months remain in a strictly defined flat range. This sets USD/SEK apart from other currency pairs with the dollar, which, on the contrary, were very highly volatile this year. Why is this happening? Perhaps the Swedish krona is so strong that it successfully counters the strong dollar?
In fact, the reason is that both currencies are weak and do not find incentives against each other. Despite certain successes in the US economy, we note an increase in the trade balance deficit, dubious prospects for further tightening of monetary policy against the backdrop of high inflation and problematic bank spheres.
In Sweden, according to the latest macroeconomic data, GDP fell by 1% in March, and manufacturing activity is at a terrible level of 45.7 pips, which leaves no chance for the kroon, which at the best of times was worth 20% more than Now.
The focus next week is the FOMC protocols and inflation in the US. Overall, volatility will remain low for USD/SEK. Technical analysis tools indicate the effectiveness of Buy trades. Indeed, the dollar is growing for the second trading day in a row. We expect that the upward movement will continue in the short term and open Buy trades. Entry points can also be the levels at which the support and resistance lines are located - 10.1372 and 10.7400 SEK, which can be reached with approximately the same probability.
