Scandinavian Currency Analysis 6.02.09

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The Swedish Krona rose against the EUR and Dollar these past few days after positive statements by the Swedish Finance minister regarding Sweden�s ability to handle any economic difficulties in the Baltic region. Swedish banks have about $75 billion in loans to the Baltic States. The fate of the Krona and the prospect of devaluation in the Baltics are still very much in focus. Currency devaluation in the Baltic States will require Sweden to borrow Swedish Krona to bolster its foreign currency reserves and therefore devaluing the currency.
Norway�s Krone surged against the dollar as crude oil traded at the highest price in almost six months. Norway�s Krone strengthened as the price of oil traded near the $70 per barrel price level, the most since November 5. Crude oil is the country�s biggest export.
Scandinavian currencies, particularly the Norwegian Krone, are likely to continue their upward trend as news of economic recovery from the U.S and Asia spark demand for commodities and higher-yielding, riskier currencies.

USD/NOK Technical Analysis

� Below are the 1-hour, 4-hour and Daily charts for the USD/NOK currency pair.
� The 1 hour chart�s Parabolic SAR, indicated by the green dots on the charts, are signaling that Buy positions are favorable at the moment for the short-term positions.
� The bullish cross on the daily charts� Slow Stochastic signals a strong upward movement may occur today.
� The 4 hour chart�s RSI is floating in an oversold territory also supporting the notion of an upward movement.