USD/SEK rises after Riksbank's cut and dovish outlook

Source Fxstreet
  • USD/SEK maintains gains exceeding 0.40%, underscoring the Dollar's continued firmness during Wednesday's session.
  • The Riksbank sports a dovish view, trimming rates as forecasted, coupled with indications of more rate cuts in the second half of this year.
  • Fed hawks are stepping in and challenging the dovish narrative.

The USD/SEK pair is trading higher at 10.55, marking a significant gain from a low of 10.45 last week. This uptick comes on the back of the monetary policy divergences between the Federal Reserve (Fed) and Riksbank. On the one hand, the Fed’s officials are turning hawkish. On the other hand, Riksbank, with a more dovish stance, has started to cut rate cuts and may undertake additional reductions in the second half of the year if the present economic conditions prevail.

After cutting rates to 3.75%, Governor Thedeen expressed a sense of caution, suggesting that a rate cut in June is improbable given the existing circumstances. He emphasized the concern regarding the weakening of the Swedish Krona (SEK), indicating that it needs to be taken into account. As for now, market expectations anticipate a total of 75 basis points of rate cuts over the next 12 months.

On the US side, recent dovish bets have been given up by investors, and the start of the easing cycle of the Fed is being priced in to start in November.

USD/SEK technical analysis

On the daily chart, the Relative Strength Index (RSI) for the USD/SEK pair resides within the positive territory after recovering from a dip into the negative domain. The MACD histogram sheds more light on the scenario, with progressively decreasing red bars showcasing a slowdown in negative momentum.

USD/SEK daily chart

In regard to the Simple Moving Averages (SMAs), the USD/SEK pair has reclaimed territory above the pivotal 20-day SMA. This escape from the bears not only illustrates evidence of buyers stepping in to restore short-term sentiment but also signals a potential shift in momentum. When observing the larger picture, the pair maintains a position above the 100 and 200-day SMAs, illustrating a solid long-term trend in favor of the bulls.

USD/SEK

Overview
Today last price 10.9054
Today Daily Change 0.0568
Today Daily Change % 0.52
Today daily open 10.8486
 
Trends
Daily SMA20 10.8735
Daily SMA50 10.6278
Daily SMA100 10.4794
Daily SMA200 10.6575
 
Levels
Previous Daily High 10.8785
Previous Daily Low 10.7876
Previous Weekly High 11.1318
Previous Weekly Low 10.7346
Previous Monthly High 11.0627
Previous Monthly Low 10.4914
Daily Fibonacci 38.2% 10.8438
Daily Fibonacci 61.8% 10.8223
Daily Pivot Point S1 10.7979
Daily Pivot Point S2 10.7473
Daily Pivot Point S3 10.707
Daily Pivot Point R1 10.8889
Daily Pivot Point R2 10.9292
Daily Pivot Point R3 10.9798

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Gold price snaps selling off after fresh Trump comments on tariffsGold price (XAU/USD) is turning positive, recovering above the $$3,300 level at the time of writing on Thursday after two days of firm selling pressure since it topped at $3,500 on Tuesday.
Author  FXStreet
Apr 24, Thu
Gold price (XAU/USD) is turning positive, recovering above the $$3,300 level at the time of writing on Thursday after two days of firm selling pressure since it topped at $3,500 on Tuesday.
placeholder
Gold price surges past $3,300 on trade jitters, yield slump reviving haven demandGold price snapped two days of losses on Thursday and rose $50, or more than 1.50%, amid renewed concerns about the US-China trade war.
Author  FXStreet
Yesterday 03: 51
Gold price snapped two days of losses on Thursday and rose $50, or more than 1.50%, amid renewed concerns about the US-China trade war.
placeholder
Gold price consolidates in a range; bulls have the upper hand while above $3,300Gold price (XAU/USD) struggles to capitalize on the previous day's move higher and oscillates in a narrow trading band during the Asian session on Friday amid mixed fundamental cues.
Author  FXStreet
Yesterday 03: 53
Gold price (XAU/USD) struggles to capitalize on the previous day's move higher and oscillates in a narrow trading band during the Asian session on Friday amid mixed fundamental cues.
placeholder
Gold edges down amid clash over status of US-China trade talksGold price is on the back foot on Friday, almost erasing all of Thursday’s gains, and looks set to close off this week in the red.
Author  FXStreet
20 hours ago
Gold price is on the back foot on Friday, almost erasing all of Thursday’s gains, and looks set to close off this week in the red.
Related Instrument
goTop
quote