SEK Currency Report | Dec 04 2020
The SEK closed yesterday at 8.44066, appreciating by 1.0% since Thanksgiving (11/26). This movement in currency can be attributed to a multitude of factors, one being a stronger than expected GDP Growth Rate year over year (Q3) at 4.9%, which was forecasted to be 4.4%. Moreover, Swedish consumer spending spiked unexpectedly in October - Retail Sales year over year grew 3.6% in October.
Since August, the USD/SEK pair was trading between 9.15 and 8.65, resistance and support, as seen in the spot chart below. However, since the Thanksgiving Holiday, the pair managed to breach the 8.65 support level. This opens up a new range of 8.75 to 8.44.
Upcoming economic indicators likely to influence the SEK
· Monetary Policy Meeting Minutes (due 7 DEC);
· Inflation Fate MoM for November (due 10 DEC);
· CPIF year over year for November (due 10 DEC); and
· Household Consumption figures for October (due 10 DEC).
Comments from the Riksbank | The central bank of Sweden (Riksbank) announced last week that it will add 200 billion crowns (US $23.69 billion) to its quantitative easing initiative, pushing the total out to 700 billion. The Riksbank also informed the press of its intention to ramp up and extend its asset-purchase programme to the end of 2021 in order to support the economy through the second wave of COVID-19. Benchmark interest rate remained on hold at 0% following the latest policy meeting, complementing the Riksbank’s assurances that “comprehensive monetary policy support will be available as long as it is needed.”