The uptrend in favor of the USD continues. The weakening of the dollar due to changes in monetary policy, with a decrease of the rate, did not change the situation. The Swedish economy was under more pressure, influenced by the economic downturn in the EU, which led to a deterioration of the situation in Sweden.
This week, the situation has not changed. After the ECB meeting last week, the SEK strengthened against the USD due to the resumption of the quantitative stimulus program. Analysts suppose this program will reflect on the local currencies positively. However, the latest macroeconomic reports show a worsening in the economic situation in Sweden. In particular, the jobless rate grew by 7.1%, although a year earlier, in August, unemployment was 6.1%. In addition, Sweden's GDP showed a weak growth by only 0.1% for the second quarter in a row. The economic situation in the EU as a whole also worries investors. Despite the growth of the ZEW index of economic sentiment, we observe a slowdown in inflation and weak GDP growth.
The US economy is currently stronger, and despite the reduction of the rate to 2%, macroeconomic reports so far strengthen the USD amid the willingness of investors to invest in risky assets. The Philadelphia FED's manufacturing activity index, released yesterday, rose to 12 points in September, exceeding forecasts. The situation in the real estate market also exceeds forecasts, demonstrating sure growth.
In this situation, the most optimal seem to be the deals to Buy. The stochastic oscillator also indicates the efficiency of the deals on the trend in the medium term.
