FxWirePro: USD/SEK hits 1-week peak, break above 21-DMA likely
Thursday, October 15, 2020 11:10 AM UTC
- The Swedish Krona slumped to a 1-week low on downbeat employment data.
- Sweden's unemployment rate rose to 8.3 percent in September, from 6.0 percent in the same period last year, as the coronavirus crisis hit the labor market.
- Moreover, a surge in the greenback further weakened the demand for Swedish currency.
- The dollar index rose after U.S. Treasury Secretary Steve Mnuchin said he and House of Representatives Speaker Nancy Pelosi were far apart on another coronavirus economic relief package, and that a deal would be hard to reach before the November 3 elections.
- USD/SEK trades 0.5 percent higher at 8.8585, having hit a high of 8.8946 earlier, its highest since October 8.
- Immediate resistance is located at 8.8969 (21-DMA), any close above could take it above 8.9348.
- On the lower side, support is seen at 8.7952, break below could take it till 8.7751.