The rates continue in the frames of a rapid upward trend, although there are signs of the formation of a flat trend. After reaching the maximum over the last four months, rates have consolidated in the range of 8.34 - 8.43 SEK.
Most probably the peak has been reached, given the number of risks for the U.S. dollar. This week investors focused on the tax reform which Donald Trump wants to implement. Despite the fact that the tax reform was approved in the U.S. House of representatives, the Senate isn't impressed with that Law. There's a lack of support for this reform even among the Republicans. Therefore, the future of the tax reform still remains undefined, which negatively affects the value of the U.S. dollar.
Positive economic data in the United States this week was unnoticed amid the situation with the tax reform, though the positive background allowed the USD to keep the current levels. As for the economy of Sweden, the situation is calm and the Swedish Krona has potential to strengthen. The negative external factors that influenced the SEK have been left in the past. Inflation in Sweden eased in October to 1.7% and the unemployment rate remained at the same level as in September at 3.9%. The greatest support was provided by the Capacity utilization indicator which rose for the fourth time to 90.8%, which is 2.4% more compared to the same period last year and the highest level since 2008. The number of orders for the industry in Sweden increased by 11.2% YoY in September which is the highest growth since February 2017.
The MACD and Stochastics Oscillators show opposite signals. It should be noted that the volatility in the market next week will be minimal. On Thursday the US will be celebrating Thanksgiving, so there will be no events that would significantly affect the rate of the USD/SEK before this day. In this situation, given the factors that in the near future may adversely affect the value of the USD, the most optimal would be the deals to SELL, which can be effective in the medium and long term. Points of entry into the market could also be the levels 8.346 and 8.437 SEK, a break of which will signal a resumption of the trend reversal.
