The upward trend was completed at the end of the year and instead a new, intense downtrend was formed. The value of the dollar has been decreasing against most currencies during the month. This was mainly because of political factors. As a result, the dollar has reached three-year lows versus the EUR, and at the moment can't find incentives for consolidation.
This week the downward trend continues. The dollar is still decreasing due to problems with the financing of the Federal government and their programs. As a result, the Federal government had to suspend its work for three days, while the Democrats and Republicans could not agree on this issue and managed to adopt only the law for temporary funding. In addition, the dollar came under pressure because of the trade conflict between the US, China, and South Korea.
The Swedish Krona, in turn, is relatively stable and has no such risks. The latest data on the Swedish economy showed a positive dynamic in the economy: inflation in December rose to 0.4%, which is the highest level in 4 months. The SEK value has been also supported by the good economic situation in the EU and investors' expectations that the ECB will cut its stimulus program sooner than expected.
The latest data about the Swedish economy is coming out tomorrow. In particular, these publications include the PPI index and data about the unemployment rate. In addition, this week is expected data on housing sales in the US and the GDP of the United States. Therefore, we can expect increasing volatility in the market. It is likely that the dollar will have the opportunity for strengthening based on new economic statistics, while political factors will recede back into the background. The RSI and Stochastics oscillators confirm the high probability of a price correction in the near future, so the deals to buy seem most effective at the moment.
