- The USD/SEK declined to a low of 10.825.
- The Swedish CPI from October will be reported on Tuesday and is expected to rise to 6.7% YoY.
- US CPI from October is also due on Tuesday.
The USD/SEK fell sharply on Monday to a daily low of 10.825 and then consolidated around 10.830, showing a daily decline of 0.40%, driven a weakening USD, ahead of the report of both country's Consumer Price Indexes (CPI) readings from October.
On Tuesday, the SCB Statistics from Sweden is expected to report that the Consumer Price Index (CPI) from October rose to 6.7% from its previous 6.5%. In that sense, if the reading comes in higher than expected, it may fuel further downside on the pair on the back of hawkish bets on the Riksbank, which left the door open for further tightening.
On the other hand, markets await the US CPI on Tuesday and Producer Price Index (PPI) and Retail Sales figures on Wednesday, which will provide the Federal Reserve (Fed) with fresh evidence on the US inflation outlook. Last week, bank officials and Chair Powell were seen as cautious and stated that the "job wasn’t done", pointing out that they’ll need more evidence to confirm that inflation is coming down. For the upcoming December meeting, markets seem to be confident that the Fed won’t hike, and the USD’s trajectory will likely be set on how long investors will price in rates at restrictive levels based on the outcome of the incoming data.
USD/SEK levels to watch
Based on the daily chart, the USD/SEK holds a bearish bias, with indicators reflecting that the bears are strengthening. The Relative Strength Index (RSI) reveals a downward slope below its middle point, while the Moving Average Convergence (MACD) histogram presents larger red bars. On the broader scale, the pair is also below the 20 and 100-day Simple Moving Averages (SMAs), but above the 200-day SMA, suggesting that the bulls continue to exhibit strength in the overall trend but are seen as weak on the shorter time frames.
Supports: 10.830, 10.770, 10.760
Resistances: 10.862 (100-day SMA), 10.900, 10.980.
USD/SEK daily chart
-638354994147541824.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD advances toward 1.1100 after soft US data
EUR/USD gains traction and rises toward 1.1100 in the American session on Wednesday. The data from the US showed that JOLTS Job Openings declined to 7.6 million in July, weighing on the USD and helping the pair push higher.
GBP/USD rebounds above 1.3150 on renewed USD weakness
GBP/USD trades in positive territory above 1.3150 in the second half of the day on Wednesday. The US Dollar (USD) struggles to find demand after soft US data, while an improving risk mood further supports the pair.
Gold recovers from multi-week lows, tests $2,500
After touching its lowest level since mid-August near $2,470, Gold stages a rebound and trades near $2,500. The benchmark 10-year US Treasury bond yield stays in the red below 3.8% after US data, providing a lift to XAU/USD.
Crypto Today: Bitcoin, Ethereum crumble under selling pressure, XRP hovers around $0.55
Bitcoin slips under $57,000 following $287.8 million in outflows from BTC ETFs on September 3. Ethereum erases 1.20% of its value on the day, dips to $2,395 on Wednesday. XRP loses key support and corrects to $0.5326, new monthly low in September.
Canada Interest Rate Decision Preview: BoC expected to cut interest rates by 25 bps on September 4
There is widespread expectation that the BoC will lower its policy rate for the third consecutive meeting on September 4. Mirroring previous decisions by the central bank, this move would most likely be of 25 basis points, taking the benchmark interest rate to 4.25%.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.