The rates continue in the frames of a downward trend, although in the period from May 19 until June 27 the trend changed to a flat one. It seemed that the downward trend had been finally completed at the beginning of July. However, market volatility has suddenly increased, and the downward trend has been restored.
This week there were no significant factors that would affect the USD/SEK rates. The main factor that influence the value of the USD in recent weeks remains the political tension in the United States and investors' worries about the future for the FED rate hikes due to weak economic data in the United States. At the same time, Federal Reserve officials maintain the stance that the rates should be raised more before the end of 2017. Nevertheless, investors suppose that the Federal Reserve may delay increasing the interest rate if the situation in the U.S. economy changes in a positive way and if political tensions in the US grow. Based on this, the dollar lost positions against most currencies while investors prefer safe-haven instruments such as JPY and Gold. The Swedish Krona, on the contrary, strengthened against the dollar. Supporting the value of the crown was the decision of the Central Bank to leave the rate unchanged at 0.5%, as expected. Representatives of the Riksbank gave good predictions for the economy of Sweden and forecasted that inflation will reach the target level of 2%. The bond-buying programme was also left unchanged. The Central Bank of Sweden also stated that they don't plan to change the interest rates until mid-2018. In this situation, the best decision is to open the short deals on a trend that is likely will continue, after the price correction.
