{"id":14236,"date":"2010-10-20T09:00:11","date_gmt":"2010-10-20T13:00:11","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=14236"},"modified":"2010-10-20T09:00:11","modified_gmt":"2010-10-20T13:00:11","slug":"usdsek-at-2-yr-low-after-fiery-speech-from-riksbank","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/10\/20\/usdsek-at-2-yr-low-after-fiery-speech-from-riksbank\/","title":{"rendered":"USD\/SEK at 2-Yr Low after Fiery Speech from Riksbank"},"content":{"rendered":"

By Greg Holden<\/strong> – The Swedish krona has undergone one of its strongest rallies in recent memory these past few days after the Riksbank Deputy Governor Barbro Wickman-Parak delivered a hawkish statement last Thursday. The SEK climbed to a 2-year high against the US dollar following Wickman-Parak\u2019s fiery call for interest rate increases in the near future.<\/p>\n

The USD\/SEK fell to 6.5129 last week, but has rallied to as high as 6.8017 at the close of New York trading yesterday. Wickman-Parak\u2019s speech highlighted the growing need for Sweden to boost rates before it\u2019s too late, but also put the spotlight on the potential reasons behind the decision to hold rates where they are. This has put some downward pressure on the SEK alongside a rising USD.<\/p>\n

In a similar turn of events, the Norwegian krone (NOK) appears to be falling out of favor with foreign investors specifically because Norges Bank is perceived to be stalling on interest rate hikes as well. The USD\/NOK has come off a 6-day high; the pair is climbing towards 5.9425 from as low as 5.7000 seen just two days ago.<\/p>\n

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

If we look at the USD\/SEK daily chart we can see some relatively clear indications of what\u2019s happening on a technical level. The pair has been trading in a downward trend for some time now, but has only recently pared some of its losses to reach back up towards its predominant, overhead trendline.<\/p>\n

We can see the price reaching back and just recently touching the 23.6% Fibonacci line. The price could meet some mild resistance there and turn downwards, but the RSI and Stochastic (slow) seem to suggest otherwise; as does the overhead trendline. It appears there could be more bullish room for this pair to run. If the price breaches above 6.8500, then traders may want to anticipate an upward breach which could climb as high as 6.9750 if the Riksbank doesn\u2019t step in on the fundamental side.<\/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 – The Swedish krona has undergone one of its strongest rallies in recent memory these past few days after the Riksbank Deputy Governor Barbro Wickman-Parak delivered a hawkish statement last Thursday. The SEK climbed to a 2-year high against the US dollar following Wickman-Parak\u2019s fiery call for interest rate increases in the … <\/p>\n

Continue reading “USD\/SEK at 2-Yr Low after Fiery Speech from Riksbank”<\/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-14236","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14236","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=14236"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14236\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=14236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=14236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=14236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}