Swedish Krona Continues to Strengthen Versus the Dollar
March 8th, 2010 Posted in Euro-Zone, In-Depth Analysis
Last week’s better than expected U.S. Non-Farm Payrolls result continued to strengthen the Swedish krona versus the U.S. dollar. The steady downtrend for the USD/SEK that began on February 5th appears to be gaining momentum as the pair continues to head lower.
After the release of the positive U.S. Non-Farm Payrolls numbers on Friday, the USD/SEK dropped to a low not seen since January 20th. The pair ended the day’s trading down at 7.1072 from an opening price level of 7.1498. Since the downtrend has begun the USD/SEK has dropped 5.7%.
Despite recent economic data that showed economic growth in Sweden declined 0.6% in the 4th quarter of last year, the SEK continues to strengthen. It appears that positive economic data in the U.S. could lead to further advancement for the SEK against the dollar. Traders may want to be short on the USD/SEK to the price level of 7.0000.
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Tags: Forex Trading, krona trading, Swedish Krona, USD/SEK
