By Dan, ForexYard – The Scandinavian currencies have made significant gains against the Euro as of late, with the single currency still hurting following the failure to fully implement a Greek bailout package. In the last week alone, both the Swedish Krona and Norwegian Krone have gained over 1300 pips on the ailing European currency. That being said, a string of positive U.S. news events have led to a steep drop in value for the Kroner against the greenback. The last week saw the Dollar move up over 600 pips against the Danish Krone.
In the near future, Scandinavian traders can look forward to a fairly volatile week, as a string of U.S. and European news events will likely dictate the direction for the Kroner. On Tuesday, the U.S. CB Consumer Confidence Report as well as a speech from Fed Chairman Bernanke will both create heavy market activity. Providing the news shows further improvements in the American economy, the Scandinavian currencies will likely suffer against USD as a result. On Wednesday, the Preliminary German Consumer Price Index (CPI) is set to be released. As the leading economy in the Euro-Zone, German economic indicators typically play a somewhat exagerated role in where EUR goes compared to other European countries. If the news is positive for Germany, the Euro could recoup some of its earlier losses against the Kroner.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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