Kroner Sees Major Gains Against EUR and USD
September 6th, 2010 Posted in Analyst Picks
Name: Dan
Email:
An increase in risk taking as of late has led to significant gains for the Scandinavian kroner against both the US dollar and euro. Positive news, most importantly Friday’s US Non-Farm Payrolls figure, has led to increased confidence in the pace of the global economic recovery. The figure, while still negative, came in well above expectations, and led to a significant boost for more volatile assets. Chief among these assets have been the Scandinavian currencies.
EUR/SEK has tumbled almost 1000 pips over the last week and is currently trading around the 9.3020 level. The Swedish krona saw significantly more gains against the greenback, with USD/SEK falling over 2000 pips in the same amount of time. Meanwhile, over the last week, the Norwegian krone saw gains of 1650 and 2200 pips against the euro and dollar respectively.
Whether the kroner can maintain its current bullish trend will largely be determined by global news events in the week ahead. Traders will want to pay attention to the UK Manufacturing Production figure and Official Bank Rate on Wednesday and Thursday respectively. The US trade Balance and Unemployment Claims figures, also set to be released on Thursday may generate significant volatility for Scandinavian crosses. Should any of these news releases come in above these forecasted levels, the kroner will likely maintain its upward movement.
