Sentiment and NATO membership may strengthen the SEK

Sentiment and NATO membership may strengthen the SEK

5. maj 2022 fra CarlsquareLæsetid: 2 minutter

The force was definitely with traders with long positions on May 4 when Fed's Powell held the central bank's statement. The yields on government bonds fell, and S&P 500 rose 2.9 per cent. One reason behind the market move was that Powell communicated that a 75 basis points increase was not actively considered for the upcoming months.

Meanwhile, the Swedish central bank, Sveriges Riksbank, has shifted to become more hawkish. That after the central bank surprisingly increased rates last Thursday. Stefan Ingves, the governor of Sveriges Riksbank, is also using a more strict language along with QT.

Nevertheless, USD/SEK has risen and is currently trading close to the ceiling of a rising trend. Given that the hawkish sentiment in the US may have peaked, while the hawkish view in Sweden may just have started, the odds may favour downside in the USD/SEK. A potential NATO membership may also trigger a stronger SEK.

USD/SEK, June 2, 2021 to May 5, 2022

Source: Infront and Carlsquare. Note: Past performance is not a reliable indicator of future results.

USD/SEK, five-year price chart

Source: Infront and Carlsquare. Note: Past performance is not a reliable indicator of future results.

 

The full name for abbreviations used in the previous text:

EMA 9: 9-day exponential moving average

Fibonacci: There are several Fibonacci lines used in technical analysis. Fibonacci numbers are a sequence of numbers in which each successive number is the sum of the two previous numbers.

MA20: 20-day moving average

MA50: 50-day moving average

MA100: 100-day moving average

MA200: 200-day moving average

MACD: Moving average convergence divergence

Important notice

This information is neither an investment advice nor an investment or investment strategy recommendation, but advertisement. The complete information on the trading products (securities) mentioned herein, in particular the structure and risks associated with an investment, are described in the base prospectus, together with any supplements, as well as the final terms. The base prospectus and final terms constitute the solely binding sales documents for the securities and are available under the product links. It is recommended that potential investors read these documents before making any investment decision. The documents and the key information document are published on the website of the issuer, Vontobel Financial Products GmbH, Bockenheimer Landstrasse 24, 60323 Frankfurt am Main, Germany, on prospectus.vontobel.com and are available from the issuer free of charge. The approval of the prospectus should not be understood as an endorsement of the securities. The securities are products that are not simple and may be difficult to understand. This information includes or relates to figures of past performance. Past performance is not a reliable indicator of future results.

28-06-2022 20:31:11

 

Skriv en kommentar

 

  

 

  

 

* Obligatoriske felter skal udfyldes