USDSEK Analysis: Preparing for the meeting of the Central Bank of Sweden

By IFCMarkets

Preparing for the meeting of the Central Bank of Sweden

The upward movement means the weakening of the Swedish krona. Since February 2015, the rate of the Swedish Central Bank had been negative. In December last year, it rose to 0%. Thus, Riksbank kept rate unchanged during the coronavirus pandemic, while almost all the world’s central banks reduced it. Theoretically, the Central Bank of Sweden could return the rate to the negative area in order to stimulate the recovery of the national economy after Covid-19. A meeting of the board of directors of Riksbank will take place on June 23, at which some views on the rate can be expressed. Inflation in Sweden in May was 0% in annual terms. Unemployment reached a 6-year high of 9%. Year-on-year GDP in the 1st quarter fell by 0.4%.

Summary of technical analysis

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