The upward trend is becoming more intense amid the strengthening of the USD. Since February 2018 the Swedish Krona has been negatively affected by the slowdown in economic growth in the EU and the risks to the global economy. This week the situation on the market has become even more complicated: the conflict between Turkey and the United States negatively affected the value of the Euro, which in turn affects the value of the SEK. The maximum level that has been reached a few days ago is the highest level for the last 19 months. At the same time, it should be noted that the Swedish Krona was cheaper only in the period from 2000 to 2002.
Over the last few days the US dollar has been in an exceptional situation due to US foreign policy: the euro is under pressure due to the fall of the Turkish Lira and gold is lower in value because of the strong dollar, which has given investors no choice but to invest in the USD or the JPY. At the same time, economic statistics continue to support the dollar at a high level. Almost all data about the US economy indicates a sure economic growth. In particular, the volume of retail sales increased by 0.5% in July, surpassing forecasts twice; the number of applications for unemployment fell to 212 thousand, while investors expected an increase to 215 thousand, compared to the previous period; the number of issued building permits also increased by 1.5% against the expected 1.4%.
At the moment, we can see on the chart a certain consolidation. Oscillators (MACD, RSI, Stochastic), at the same time, unanimously signal that the rates are in the oversold zone. Thus, we can expect for sure some price correction in the near future, which makes the deals to SELL the most effective in the short-term perspective.
