By Dan Eduard – The Scandinavian Kroner has recorded steep losses against the U.S. Dollar as of late, a reflection of the overall drop in risk sentiment among investors. Despite a fair amount of confidence in the Swedish economy, the USD/SEK has risen to an almost three-week high. The pair rose to 7.2380 earlier in the week before a minor downward correction occurred. The Swedish currency has faired much better against the Euro. The EUR/SEK tumbled over 500 pips on Tuesday amid news that a Greek bailout will likely be financed by the Intenational Monetary Fund (IMF) and not other Euro-Zone currencies.
The Norwegian Krone has also seen dramatic losses against the USD lately. The USD/NOK moved as high as 5.9802 in trading on Monday, before making a slight correction. The pair has since been fluctuating, although it appears to have settled around the 5.9400 level.
Scandinavian currency traders will want to pay attention to several upcoming news events likely to impact the forex marketplace. The US New Home Sales report is forecasted to show an increase in new home sales over the last month. If this is indeed true, the Dollar could increase its recent gains on the Kroner. That being said, the housing market is notoriously hard to predict. Kroner traders looking for a good time to enter the market will want to see if the housing figure comes in below expectations, in which case the Scandinavian currencies may see some gains. Additionally, Kroner traders will want to keep up with the British Annual Budget release, as well as the latest U.S. Crude Oil Inventories figure, both of which could create market volatility.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.