By IFCMarkets
Preparing for the publication of data on inflation
A negative factor for the Swedish krona is the increase in unemployment in Sweden to 7.5% in January 2020 from 6% in December last year. This indicator reached the high since March 2019. This reduces the likelihood of a rate hike by the Swedish Central Bank (Riksbank) at the next meeting on April 28. Now the rate is equal to zero. Meanwhile, in December, inflation in Sweden reached 1.8% year over year and approached the target level of 2%. On Wednesday, February 19, inflation data for January will be released both in Sweden and in Britain, which may affect the exchange rate of the GBPSEK. In December, inflation in Britain was 1.3% at the rate of the Bank of England + 0.75%. The British pound shows an uptrend after the recent appointment of Britain’s new finance minister Rishi Sunak. Investors believe that his budget program will support economic growth.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Sell | |
| MA(200) | Buy | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Buy |
Summary of technical analysis
| Order | Buy |
| Buy stop | Above 12.75 |
| Stop loss | Below 12.25 |
Market Analysis provided by IFCMarkets
