- The USD/SEK currency pair experienced a notable increase, reaching a peak of approximately 11.212 before stabilizing at around 11.180, resulting in a gain of 0.35%.
- In light of robust GDP figures, there has been a decrease in U.S. Treasury yields and a decline in expectations of a more aggressive stance by the Federal Reserve.
- The focus is currently on the upcoming release of the September PCE data from the United States, scheduled for Friday.
In recent market developments, the USD/SEK currency pair exhibited notable strength on Thursday, extending its positive momentum for the fifth consecutive day. This upward movement propelled the team to reach its highest point since September 22, getting a level of 11.212. Robust data emanating from the United States has emerged as the primary catalyst behind the superior performance of the Greenback compared to its counterparts. However, the potential for further gains is curtailed as yields in the U.S. experience a decline.
According to the latest report from the U.S. Bureau of Economic Analysis, the preliminary estimate of the Gross Domestic Product (GDP) Growth Rate for the third quarter exceeded expectations. According to recent data, the economy exhibited a growth rate of 4.9% every quarter, surpassing the projected 4.2% and marking a significant increase from its previous level of 2.1%.
In a recent report, the U.S. Department of Labor has announced that the Initial Jobless Claims for the week ending on October 21 have surpassed initial projections, presenting a concerning trend in the labor market. The latest report reveals that the headline figure has reached 210,000, beating the consensus forecast of 208,000. This represents an increase from the previous figure of 200,000.
In light of robust GDP figures, investors are directing their attention towards the acceleration of Jobless Claims, coinciding with the decline in U.S. Treasury yields. In recent trading sessions, there has been a decline in the results of the 2-year, 5-year, and 10-year bonds, reaching approximately 5.04%, 4.80%, and 4.84%, respectively. This decrease has had a limiting effect on the gains of the United States Dollar (USD) in the market.
Another element that may impede the pair’s upward movement is the speculation among investors regarding the possibility of the Federal Reserve (Fed) refraining from implementing further interest rate hikes in 2023. According to the CME FedWatch Tool, there has been a decrease in the likelihood of a 25 basis points hike in December, with the odds falling to 20%. Additionally, the tool indicates a high probability of a pause in November, as it is already being factored into market pricing.
Nonetheless, the impending release of Personal Consumption Expenditures (PCE) data for September is expected to influence the dynamics of the currency pair. This particular metric holds significance for the Federal Reserve as it serves as their preferred gauge for measuring inflation.
Keep an Eye on the USD/Sek Levels
According to a recent daily chart analysis, a positive trend is expected for the USD/SEK currency pair shortly. The Relative Strength Index (RSI) has surpassed its midpoint and is currently in positive territory, indicating a positive market signal.
This aligns with the Moving Average Convergence Divergence (MACD), displaying green bars, further strengthening the prevailing bullish sentiment. In the broader context, the pair currently resides above the 20,100,200-day Simple Moving Average (SMA), suggesting a favorable stance for the bullish sentiment.
In the latest market analysis, support levels have been identified at 11.145, 11.087, and 11.055. These levels indicate the potential areas where the price of a particular asset may find stability and experience a decrease in selling pressure.
According to recent market analysis, there are several notable resistance levels that traders should keep an eye on. These levels include 11,200, 11,242, and 11,265.