The USD/SEK has become one of the most underrated currency pairs on the market, considering its high volatility and predictability. It helps to see how the results of the Presidential elections in France affected the rates. Of course, the main reason for the strengthening of the Swedish Krona, which rose against the dollar, was the strengthening of the Euro. The question of the victory of E. Macron pertains to the future of the entire European Union. Sweden is highly dependent on the EU. Still, the giant price hike from 9.02 to 8.7 SEK surpassed all expectations from the predictable outcome of these elections. Traders who are focused on currency pairs related with the Euro - EUR/USD, EUR/JPY, EUR/GBP and others, missed a great opportunity to earn on the USD/SEK.
At the moment, the rates have consolidated at the level of 8.83-8.84 SEK for $1. The market is waiting for the unemployment report in the United States. Also, in the evening we expect the speech of the FED Chairperson Yellen and FOMC members. It can affect the rates and strengthen the dollar. Nevertheless, the recently received information about the Swedish economy, in particular the increase of the volume of industrial production in 3.8% year on year, the increase in orders for the industry, which is one of the highest levels over the past 10 years, will not allow the Swedish krona to lose a lot in price. The main influential event still remains the second round of the French elections, where the victory of E. Macron is obvious for investors. It definitely will lead to a further strengthening of the EUR and SEK.
At the moment the rates of the USD/SEK are in the frames of a flat trend but the high volatility (which has been present on the chart since the beginning of this year) makes this trend special: the rates are in a very wide range from 9.07 up to 8.76 SEK. The trend can be observed most clearly only on the hourly and daily chart. Points of entry can be considered on the levels 8.817 and 8.855. The MACD Oscillator is neutral while the Stochastic is showing a signal to open short deals, which is absolutely right in medium-term trades, considering the possible impact of the upcoming elections in France on the rates of the USD/SEK. Upon short-term trading, you can open the deals to BUY, though volatility won't be high today.
