While the U.S dollar is under pressure due to the political scandals of Trump's administration and the slowdown of US economic growth, the Swedish Krona continues to strengthen, and has reached its best level for the last nine months - 8.68 SEK against the dollar. But the weakening of the dollar isn't the only reason that caused the strengthening of the krona. It was also impacted by the end of the political uncertainty in the EU, as well as the optimal economic indicators in Sweden. Recently published data showed GDP growth in Sweden is 0.4 % in Q1 2017. Investors expect a more significant growth at 0.9%, but given the weakening dollar, it was enough to continue strengthening.
It is likely that the downtrend will continue this month. The U.S. dollar, however, can be strengthened for some period. In particular, new data about the employment in the United States has encouraged investors, stopped the weakening of the USD, and consolidated the rates. According to the ADP's company report, the number of jobs created in May increased by 253,000, although it was expected to rise by only 185,000 places. Today we expect the official data from the Ministry of labour, which will likely confirm the statistics from the ADP. Good data on the labor market may influence the FED's decision to raise interest rates, so investors are focused on this data and await it with keen attention.
Thus, in the near future we can expect a price correction. In short-term trading the most effective course will be the deals to Buy. The Stochastic oscillator also indicates a good time for the long trades. We can also designate the points of entry at the levels 8.671 and 8.705 SEK, the breakout of which will signal the exit from the consolidation phase. Special attention should be paid to the level 8.671, whose achievement will signal the continuation of the trend and can serve as good grounds to open the short deals.
