Swedish Krona Continues to Gain on the Dollar 2012

The Swedish krona continues to be one the strongest performing currencies against the dollar. Since the beginning of the month, the krona has climbed over 2.5% on the greenback. Last week the outlook for the economic recovery in Sweden was updated as signs the global economic crisis is weakening. This was a catalyst for the krona as the currency further strengthened, particularly against the dollar.

The economic output of Sweden is predicted to fall by 4.9% this year while growing by 2% in the following year. This is according to the Sweden Ministry of Finance. The previous forecasts were slated to be a contraction of 5.2% for the current year and growth of 0.6% in the following year. Unemployment forecasts were also reduced for next year to 10.7% from 11.4%.

The revised forecasts were followed by strong comments from the Swedish Finance Minister, Anders Borg. Borg would like to see further economic policy enacted to assist in the expansion of the Swedish economy. Along with a government stimulus package and spending on new infrastructure projects, the government is in the position to further cut taxes.

These economic measures bode well for the Swedish economy and in particular the krona. It may explain why traders have bid up the price of the krona in recent trading. As the dollar continues to fall against the major currencies and the Swedish government continues to submit favorable legislation on the part of the economy, being short on the USD/SEK is preferred.

source: forexyard.com

Dollar Gains on U.S. Unemployment Data 2012

The dollar rose against most of it major currency pairs on Thursday after U.S. weekly jobless claims came in lower than expected.The weekly report has had greater impact on trading in recent months because of investor concern that the U.S. economic recovery will be tepid and creates few new jobs to replace those lost during the recession.

The USD/JPY cross is actually currently trading higher by 80 pips today at 90.47. However, against the EUR, the Dollar is trading higher by 150 pips at 1.4855, as we see a sharp correction in the pair’s behavior. The GBP/USD pair is level today at 1.6550, as market volatility seems to have slowed down as late night trading approaches.

As for tomorrow, many impacting economic indicators are expected from the U.S. economy. Traders are advised to pay special attention to two leading indicators, the U.S Trade Balance and Prelim UoM Consumer Sentiment. A positive result from both this indicators might boost the Dollar towards another day of rising trends.

source: forexyard.com

Scandinavian Economies Leading Europe out of Recession?

Following last week’s employment data from the United States it appears as if the US Dollar has entered a free-fall and many other global currencies are reaping the benefits. The Scandinavian currencies have largely entered bullish trends against the greenback, but also surprisingly against the EUR.

While some analysts were concerned about a swift Swedish recovery due to the Baltic crisis, most countries in the northerly region have seen strong and steady growth. Norway’s economy has benefited largely from climbing Crude Oil prices and Denmark’s debate about entry into the EU’s legal regulations has helped its economy find direction.

The NOK, SEK and DKK have all climbed to 2-week highs versus the USD, as well as a near-2-week high against the EUR. Following Norway’s decision to hike interest rates recently, the region appears to be on the receiving end of recent risk appetite. If this continues, Scandinavia may find itself leading the broader region out of this economic downturn.

Technical Analysis

- The chart below is the 2-hour EUR/SEK chart by ForexYard.

- The indicators used are the Relative Strength Index (RSI) and the Stochastic (slow).

- Point 1: The RSI shows that this pair is currently over-sold and experiencing upward pressure.

- Point 2: The Stochastic (slow) shows a deep bullish cross followed by an upward cascading price movement. This suggests that there is momentum behind the current upward correction.

source: forexyard.com

EUR/USD Hits $1.50 level 2012

European’s currency rose against a broadly weaker U.S. dollar yesterday after the Group of 20 promised to keep stimulus policies in place until the global economic recovery was assured. The EUR is trading about 1% higher against the U.S. dollar amid general risk appetite for high-yielding assets on Tuesday.

The European currency’s strength was in line with other global currencies that took advantage of renewed risk appetite that suggested U.S. interest rates will stay low for some time; particularly after last week’s soft U.S. jobs data

source: forexyard.com

EUR’s Trends to be Set by German ZEW Economic Sentiment 2012

The EUR’s trends for the upcoming day are likely to be set by the outcome of the German ZEW Economic Sentiment publication at 10:00 GMT. The forecast is 58.9, versus the 56.9 previous result. A result matching the forecast, or even better is likely to boost the EUR. Therefore, we could see the EUR/USD cross surpass the 1.5050 level. However, a result worse than this could lead to a very bearish EUR indeed. Traders, it is highly recommended that you open your positions in the EUR’s main crosses as soon as possible.

source: forexyard.com

USD/JPY on Course for Bearish Correction 2012

USD/JPY sustained upward movement has finally pushed its price into the over-bought territory on the hourly chart’s RSI. Not only that, but there actually appears to be a bearish cross on the Slow Stochastic pointing to an imminent downward correction. Forex traders have the opportunity to wait for the downward breach on the hourlies and go short in order to ride out the impending wave.

USD/JPY Hourly Chart

source: forexyard.com

U.S. Unemployment Claims to Set the Pace of the USD 2012

The U.S. Unemployment Claims Report will set the pace of the USD today. Despite the Dollar diving against the GBP so far today, in the coming hours there is some mouthwatering data that is set to be released from the U.S. Britain kept her rates unchanged earlier today, as the Bank of England (BoE) revealed that its quantitative easing will conclude sooner rather than later. This is why the GBP/USD cross is set for a 3 day winning streak. The pair is already up by over 100 pips today at the 1.6618 mark.

However, in the coming few hours, the leading currencies, such as the GBP/USD cross will be under much pressure from the Dollar, as a string of data is set to be released from the U.S. At 13:30 GMT, the Unemployment Claims, Prelim Nonfarm Productivity and the Prelim Unit Labor Costs will all be published simultaneously from the U.S. Surrounding these releases; there will be very high volatility in the forex market. Thus to open big positions in the U.S. Dollar now will be the wisest decision that you make this week.

source: forexyard.com