Swedish Krone (SEK)?

Beginner Questions
1

Hello again everybody.

Tell me - does anybody know anything about the Swedish Krone (SEK)?

What I mean to say (ask) is - does the Swedish Krone have a correlation to / with any other currency / currency pair - or a correlation to / with a commodity - or anything like that? Tied to equities? Anything?

I sometimes trade EUR/SEK and USD/SEK and today the SEK seems to be strengthening BIG time against the EUR and the USD and I’m just trying to find some reason or technical analysis for this.

Edit:

Just an observation (for now anyway): it appears that as the EUR strengthens against the USD so the EUR and the USD weaken against the SEK. Not sure if this means is anything or if this is EXACTLY what is happening.

Another edit:

For what it’s worth the Romanian Lei (RON) also seems to be moving in the same direction as the SEK against EUR and USD. Could this have something to do with the ECB ‘pumping’ cash into the system and leaving interest rates unchanged?

Regards,

Dale.

2

Hello:

Interesting questions.

I think around that particular day we had an interest rate decision coming out of Sweden, or inflation figures.

If you noticed EUR/NOK and USD/NOK the past few days, all the movement was based on speculation prior and after Norges Bank’s rate decision (I think yesterday).

Market wasn’t sure if Norges Bank was gonna raise the main interest rate or hold it, and once the Bank did indeed raise, NOK gained heavily…

Also don’t forget that markets the past week are speculating the Federal Reserve is very keen on cutting Fed funds rate further, maybe up to 0.5% next Haloween meeting, so that would widen the interest rate differential between NOK and USD.

Note that markets weren’t sure the rate would be increased because of recent credit and liquidity trouble in Europe.

SCANDIES are an interesting currency niche. Good luck trading them…

3

Thanks khashood, much appreciated.

Regards,

Dale.

4

Usualy the kronor hovers around 7.5. I haven’t seen a chart for a while. Last time it was way down in the 6es. I wonder when the kronor is going to hit bottom and how to put a buy in. Proper entry level etc.
Any ideas?