The uptrend, which began more than 2 years ago, continues. The factors influencing the pair are changing, but the trend remains in favor of the USD. Therefore, the USD/SEK proved to be a reliable asset for traders, which did not lose its profitability with the beginning of a difficult epidemic-dominated period in the global economy.
The coronavirus remains a crucial factor for the USD/SEK this year. The epicenter of the pandemic, having shifted to Europe, puts strong pressure on the value of local currencies. Sweden is also no exception and has more than 2 thousand people infected with the coronavirus. In these conditions, investors still prefer the dollar, although this week European markets were able to strengthen in anticipation of measures to counteract the consequences of the negative impact of the coronavirus on the world economy. Also, investors appreciated the reports on business activity in the manufacturing sector of the EU and the eurozone, which were better than expected in March.
The Swedish Krona was affected only by external factors, in the absence of reports on the Swedish economy, although the development of a pandemic in Sweden is also relevant. We believe that the strengthening of the USD against the Swedish Krona is taking place within the price correction, and the uptrend will continue. Therefore, the deals to BUY are considered more promising, although in the short term, short deals in favor of the USD can still be effective. Technical analysis tools are also tending to the deals to BUY in the long term.
