{"id":11889,"date":"2010-08-10T08:45:32","date_gmt":"2010-08-10T12:45:32","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=11889"},"modified":"2010-08-10T08:45:32","modified_gmt":"2010-08-10T12:45:32","slug":"swedish-krona-champion-of-summer-time-growth","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/08\/10\/swedish-krona-champion-of-summer-time-growth\/","title":{"rendered":"Swedish Krona Champion of Summer-Time Growth?"},"content":{"rendered":"

By Greg Holden <\/strong>– Which currency would you claim as the strongest in Europe these past three months? Only forex traders familiar with the variety of instruments available in Europe would think to guess Sweden\u2019s krona (SEK). It\u2019s not that the SEK is the strongest in the region, but that it has potentially outpaced most others in its bullishness, and is no doubt a contender for summer-time champion of value gained.<\/p>\n

This Scandinavian currency<\/a> has, in fact, gained 7.75% against the USD since early June, and 4% versus the euro. The krona and British pound appear to be in a close race for most ground gained this summer. And that\u2019s not all\u2026<\/p>\n

Sweden\u2019s economy is growing; and faster than many expected. Second quarter GDP was posted at 3.7%, year-on-year. Sweden\u2019s central bank expects annual growth for 2010 to be 3.8%, and 3.6% for 2011; even though the government offered a less optimistic forecast with 3.3% in 2010, and 3.8% in 2011. Lastly, over 80% of Swedish businesses reported better-than-expected earnings. Compared to a similar figure of roughly 65% for Germany, and Sweden\u2019s recent growth, put into that perspective, suddenly appears more favorable than some of Europe\u2019s other major economies.<\/p>\n

Now the major question is whether Sweden can continue such growth. The Riksbank was one of the first major European economies to raise interest rates following the recent financial crisis and recession. But some analysts worry that it may have acted too soon. Whatever the outcome of such monetary measures, the first round of results appears to be in: Sweden 1<\/a>, market pessimists 0.<\/p>\n

Technical Analysis<\/strong><\/p>\n

EUR\/SEK Fails to Breach Resistance Level \u2013 Looks to Resume Bearishness<\/em><\/p>\n

\u2022\tThe chart below is the EUR\/SEK 4-hour chart provided by ForexYard<\/a>.
\n\u2022\tFor the past week the pair has rebounded from its recent low of 9.3335, and is currently trading around the 9.3950 level.
\n\u2022\tThe Fibonacci Retracement lines show that the pair tested the 23.6% line for several times, yet failed to breach it.
\n\u2022\tThe Slow Stochastic has recently completed a bearish cross, suggesting that a bearish move could be expected.
\n\u2022\tThe MACD has completed a bearish cross as well, further indicating that a down-trend might take place soon.
\n\u2022\tThe pair has potential to drop towards the 0% support level, which is located around the 9.3500 level.<\/p>\n

EUR\/SEK \u2013 4-Hour Chart<\/strong><\/p>\n

\"\"<\/a><\/p>\n

Forex <\/strong>Market Analysis provided by ForexYard.<\/a><\/strong><\/em><\/p>\n

\u00a9 2006 by FxYard Ltd<\/p>\n

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Greg Holden – Which currency would you claim as the strongest in Europe these past three months? Only forex traders familiar with the variety of instruments available in Europe would think to guess Sweden\u2019s krona (SEK). It\u2019s not that the SEK is the strongest in the region, but that it has potentially outpaced most … <\/p>\n

Continue reading “Swedish Krona Champion of Summer-Time Growth?”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-11889","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/11889","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=11889"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/11889\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=11889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=11889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=11889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}