The deals with the USD/SEK have become some of the most profitable in the past years, and in the meantime, we can see a continuation of the downward trend after the price correction. At the moment, the dollar is worth 8.2924 SEK, which is the lowest price in the last three years. Will the Swedish krona be strengthening more than now? Quite possibly.
This week, the dollar managed to strengthen, largely due to good macroeconomic reports. Improvement in economic indicators was observed in all sectors of the economy. In particular, there is an improvement in the construction of new homes, and the number of applications for unemployment benefits was lower than expected. Also, the index of manufacturing activity from the Federal Reserve Bank of Philadelphia was several times higher than the forecasts, which is a positive signal for investors. The introduction of incentives for the US economy and the corresponding monetary policy continue to be a limiting factor for the dollar.
The Swedish krona has been under pressure this week due to investor concerns about tougher quarantine measures in a number of EU countries, and although there's no lockdown in Sweden itself, this is pushing investors away from investing in a country whose economy is heavily dependent on exports to the EU.
Most technical analysis tools tend the deals on the trend. We also believe that such deals remain the most relevant and most promising so far.
