Forex Investment and Currency Trading

Risk Aversion Provides a Negative Backdrop for NOK and SEK
While there has been much focus on the recent sudden weakness of the NOK and SEK since the beginning of September, this weakness comes after relative stability since the beginning of the credit crunch compared to the other majors which have recorded far greater shifts stronger or weaker on a broad TWI basis. That said, it appears that NOK and SEK are at least starting to catch up. Indeed on the EUR crosses both NOK and SEK have reached multi-year highs comparable with previous crises.
The rapid weakening of both currencies coincides [...]

[Read more →]

The SEK outlook is clouded by Sweden’s position as a small open economy. Domestic demand is still reasonably strong and this will provide some insulation. So too the country’s solid current account surplus position, though judging by the performance of the NOK during the current bout of risk aversion, support from this source may be meagre. SEK remains too rich to the NOK. That has been the case for some months. A corrective rally in NOK/SEK looms.
That EUR/SEK has drifted to the top end of its twelve month trading range largely reflects EUR strength rather than SEK weakness. SEK has [...]

[Read more →]