USDSEK hits monthly lows today as the risk-on sentiment drives investors away from the safe-haven assets such as USD. The pair is moving clearly on risk sentiment, and as long as investors risk appetite rises, SEK will continue to attract some bids. The developments in the coronavirus front are driving sentiment, and World Health Organization director Tedros said on Monday that there are alarming increases in COVID-19 infections in many countries and added that hospitals are starting to fill up.
Riksbank, the central bank of Sweden in its policy meeting on July 1st, kept the interest rates unchanged as was expected by markets but announced the extension of the asset purchases from SEK 300 billion to SEK 500 billion up to the end of June 2021. Riksbank will continue to purchase government and mortgage bonds as well as commercial paper. Above that in September, the central will start also buying corporate bonds.
Riksbank now expects an economic contraction between 7% and 10% for the full year and unemployment of about 10%. In 2019 the jobless figure was 6.8%.
USDSEK Price Daily Analysis
USDSEK is 0.58% lower at 9.1351 hitting fresh monthly lows as bears are driving the pair since mid-May after the pair breached below the 200-day moving average. What can cancel the bullish momentum is if the USD managed to return above the 9.40 mark.
The focus now is on lower levels, and the initial support for the USDSEK pair will be met at 9.1338 the daily low. The next support zone for the pair might emerge at 9.1040 the low from March 20, 2019. The next support stands at 9.0454 the low from February 4, 2019.
On the contrary, immediate resistance for the USDSEK pair will be met at 9.2046 the daily top. A break above 9.2046 might attract more bids for an attempt to the next resistance level at 9.2802 the high from July 10 trading session. Next supply zone stands at 9.3506 the high from July 6.
USDSEK Daily Chart