The rates continue within a weak uptrend in favor of the USD. The US currency is gradually strengthening against the Swedish krona for the seventh month, with varying success. During this period, the rates increased by 5.5%. The reason for the active growth of the USD was the recovery of the US economy in 2021, as well as the perspectives for changing the Fed's monetary policy. At the same time, the regulator is in no hurry to revise the rate, which may not happen until 2023, according to their plans.
At the moment, the Swedish krona does not find enough incentives to change the situation in its favor. The latest macroeconomic reports showed record growth in the services sector, but business activity in the industrial sector declined for the fourth month in a row.
In the near future, the focus of investors' attention will be on macroeconomic reports in the United States. The composite index of business activity, the trade balance, weekly unemployment reports, and the unemployment rate in the United States in July will be published this week, so the volatility will increase as we approach the end of the week. Technical analysis tools are multidirectional, but in the current situation, we consider the buy signal from the Stochastic oscillator to be correct and we shall be buying the USD today.
