The USD/SEK pair will fluctuate today as traders react to disappointing inflation data from Sweden and the U.S.
Consumer prices in the United States rose at an annualized rate of 1.2% compared to 1.4% in September.
In Sweden, the consumer price index rose by 0.3% in October.
The USD/SEK price was little changed today as traders reacted to inflation data from the United States and Sweden. The pair is trading at 8.6300, slightly above this week’s low of 8.5570.
Inflation in Sweden declines
Consumer prices in Sweden fell in October, according to the latest figures from the Swedish Statistics Office.
The consumer price index fell by 0.1% month-on-month. This was in line with the expectations of the analysts surveyed by Reuters. It was also lower than the 0.1% increase of the previous month.
The consumer price index rose by 0.3% in October, a slight decline of 0.4% compared with the September increase. At the same time, the consumer price index with a fixed interest rate remained at 0.3% in October. According to the office, this development was mainly due to electricity prices. Electricity costs fell by 4.9%.
Other items affecting consumer prices were fuel, telephone equipment and package holidays, which fell by 10.2%, 9.8% and 16.9% respectively. These declines were offset by increases in food and soft drinks, housing, furnishings and household goods.
These figures came at a time when the number of Covid cases in Sweden began to rise. On Tuesday the country recorded more than 4,160 new cases. This was slightly below last Thursday’s increase of more than 4,766 and the number of hospitalizations has also continued to rise, according to the Financial Times.
This has prompted the government to partially close bars and restaurants for the first time. The authorities have also urged people to stay at home if possible and avoid physical contact.
Sweden The number of Covid cases has increased
US inflation also low
The USD/SEK is also reacting to consumer prices from the United States. According to the Statistics Office, the country’s Consumer Price Index (CPI) rose at an annual rate of 1.2%. This was slightly less than the 1.4% increase of the previous month. On a MoM basis, the CPI rose by 0.0%. The core CPI, which excludes volatile food and energy prices, rose at an annualized rate of 1.6%. These figures are below the Fed target of 2.0%.
Regardless, more than 709,000 Americans filed for unemployment benefits last week. This was the lowest level of initial applications since March of this year, when the country went into lockdown. The number of trailing applications for unemployment benefits dropped to 6.78 million from 7.28 million last week.
Technical Outlook USD/SEK
USD/SEK technical table
On the daily chart, we can see that the USD/SEK pair is on a strong downward trend lately. Since March it has dropped more than 17%. The current price is also an important support as it was at its lowest levels in July, August and September. It is also below the single moving 25-day and 50-day averages. Therefore, the pair will continue to fall, at least for now, especially if it manages to move solidly below this week’s low of 8.5570. Read our report about the best forex brokers with high leverage.