Swedish Krona hits three-year low

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Swedish Krona hits three-year low after weak inflation data

Swedish Krona, Euro & GBP trending points

  • Swedish Krona plunged in excess of 1 percent against American dollar and euro after poor inflation data
  • Euro was up by 0.2 percent to 1.3294 against American Dollar, as trade talk resumes
  • GBP gained 0.88 percent to 1.3032 against American on affirmative Brexit headlines
  • Bank of Japan is considering further easing of interest rate, as rising yen price could hurt economy.

Swedish Krona curbed to the lowest level since 2016

On Tuesday, the 19thof February, the Swedish Krona was plunged heavily against a basket of global currencies including the majors such as euro, GBP and USD, after weak inflation data had been pushing the investors to sell the currency and to scale-up bets on an interest rate hike this year.

The Swedish Krona (SEK) rose last week against a gauge of global currencies after the Central bank of Sweden had made it clear that they were going to stick with their plans of a rate hike in the second half of 2019.

EUR/SEK daily price chart

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EUR/SEK daily price chart

However, following the release of inflation data, which showed that the growth had drooled deeply in January, SEK plummeted over 1 percent on Tuesday (Feb. 19th) to a two-year low against American Dollar at 9.3695, while the SEK outlook is getting more and more troublesome and EUR/SEK could test 10.75-11.00 range at the later part of the year.

USD/SEK daily price chart

USD/SEK daily price chart

Meanwhile, the Euro rose against American dollar against all of the odds, as the next round of trade talk begins in Washington, while the GBP posted a heavy gain on fresh optimism over Brexit.

Elsewhere in the world, the Japanese Yen faltered to 110.71 against the American dollar from 110.45, as the governor of Bank of Japan remained downbeat and said that a stronger yen could have hurt the economy.

Bottom Line

When this report is being prepared, the Swedish Krona was trading at 10.5685 against euro after testing August 2018 high earlier in the midday European session, while the SEK plunged over 0.70 percent against American dollar to 9.3224 after testing 9.4158 region earlier in the session, its best level in more than three years.

Since the inflation growth target felt sharply on January, the currency would likely to falter further and the Swedish Central bank would likely to reconsider their rate hiking policy, which was scheduled to take place at the third quarter of 2019.

Read more on Euro here

[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]

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