{"id":19452,"date":"2011-02-15T07:39:28","date_gmt":"2011-02-15T12:39:28","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=19452"},"modified":"2011-02-15T07:39:28","modified_gmt":"2011-02-15T12:39:28","slug":"swedish-krona-bullish-after-riksbank-rate-hike","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/02\/15\/swedish-krona-bullish-after-riksbank-rate-hike\/","title":{"rendered":"Swedish Krona Bullish after Riksbank Rate Hike"},"content":{"rendered":"<p><strong>By Greg Holden<\/strong><\/p>\n<p>The Swedish economy is once more at the forefront of Scandinavian  news, with the krona (SEK) bullish against its primary rivals. After an  increase to the short-term repo rate by the Riksbank, forecasts on the  SEK appear to favor additional gains throughout 2011, but the cost  exporters will bear from this increase has become a concern.<\/p>\n<p>A variety of industries in Sweden have  benefited from the competitiveness of Swedish goods. The Swedish telecom  industry continues to hold a strong competitive edge, with <a href=\"http:\/\/www.forexyard.com\/blog\/en\/2011\/02\/01\/swedish-krona-reaches-10-yr-high-vs-eur\/\"><strong>Ericsson<\/strong> posting steady growth<\/a>. Truck-maker <strong>Volvo AB Asia<\/strong> also posted a 50% increase in sales over the last nine months.<\/p>\n<p>The downside to the latest upsurge in the krona, however, has been  that manufacturers and a variety of retail companies are suffering  losses from a decline in exporting power. The rising price of raw  materials and crude oil has gouged Sweden\u2019s manufacturing industry, as <strong>SKF AB<\/strong> \u2013 a leading ball-bearing manufacturer \u2013 reported lower than expected profits; citing high raw material prices as a factor.<\/p>\n<p>As the Riksbank recently increased its short-term repo rate to 1.50%, the krona has seen continuous gains. The <a href=\"http:\/\/www.forexyard.com\/en\/trading\/eur-sek\">EUR\/SEK<\/a> posted a sharp drop today, following the Riksbank decision, from 8.7809 to as low as 8.7426. The <a href=\"http:\/\/www.forexyard.com\/en\/trading\/usd-sek\">USD\/SEK<\/a> witnessed a similar drop from 6.5000 to as low as 6.4572 before retracing back to its current price of 6.4640.<\/p>\n<p><em><strong><a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\">Forex Market Analysis provided by ForexYard. <\/a><\/strong><\/em><em><strong><a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\"><br \/>\n<\/a><\/strong><\/em><\/p>\n<p>\u00a9 2006 by FxYard Ltd<\/p>\n<p>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":"<p>The Swedish economy is once more at the forefront of Scandinavian news, with the krona (SEK) bullish against its primary rivals. After an increase to the short-term repo rate by the Riksbank, forecasts on the SEK appear to favor additional gains throughout 2011&#8230;<\/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-19452","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/19452","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=19452"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/19452\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=19452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=19452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=19452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}