USDSEK trades higher for the second straight day something that we haven’t seen since June 19. Greenback gets the bids today after better than expected NFP data.
The Nonfarm Payrolls registered in at 1763K, above the expectations of 1600K in July. A warning sign is that the delay in the reopening process in some southern states has slow down the pace of new jobs creations. In June, the economy created 4.8 million new jobs.
The unemployment rate in the USA dropped to 10.20% from 11.1% the previous month. Labor Force Participation Rate in July rose to 61.4%, topping the forecasts of 61.1%. The Average Weekly Hours increased to 34.5, beating the estimates of 34.4. The Average Hourly Earnings came in at 4.8% also above the forecast of 4.2%. The U6 Underemployment Rate reported at 16.5% below the estimates of 19.7%.
Sweden announced that the GDP contracted by 8.6% in the second quarter of the year, marking the worst drop since 1980. Sweden followed the contraction in GDP despite the more relaxed approach to the COVID-19 outbreak. The unemployment rate in Sweden increased to 9.4% in June, the highest level since 1998. In June, the economy showed some signs of recovery. The Retail Sales came in at 1%, beating the estimates of 0% in June. The yearly reading for Retail Sales came in at 3.5% also above the forecasts of 1%.
USDSEK Price Technical Analysis
USDSEK is 0.74% higher at 8.7496 as the rebound from the 25-month lows continues helped by better economic data from the USA. Now the bulls need to break above the first resistance at 8.8009 the high from August 3. Next obstacle stands at 8.9973 the top from July 21. What can cancel the bearish momentum is a move above 9.1120 the 50-day moving average.
On the other hand, support would be met at 8.6580 today’s low. Next support stands at 8.6290 the low from yesterday’s trading session. The low from June 14, 2018, at 8.5722 is the next support level to watch.
USDSEK Daily Chart