FxWirePro: USD/SEK hovers towards 2-year trough, outlook remains bearish
Wednesday, August 5, 2020 11:52 AM UTC
- The Swedish Krona rose, extending gains for the third straight session on the back of upbeat economic data and weakness in the dollar against a basket of currencies.
- Sweden's Services PMI increased to a seasonally adjusted 54.8 in July from an upwardly revised 50.9 in the previous month, pointing to the second straight month of expansion in the service sector, and the highest reading since February.
- Separate report showed Swedish industrial production increased 8.80 percent in June over the previous month, while total orders received dropped 11.9 percent year-on-year in June 2020, following an upwardly revised 18.9 percent plunge in the previous month.
- The dollar index slumped amid speculation that stalemate over fiscal policy in Washington could leave the Federal Reserve with more to do.
- USD/SEK trades 0.4 percent lower at 8.6800, having hit a low of 8.6397 on Friday, its lowest since June 2018.
- Immediate resistance is located at 8.7644 (10-DMA), any close above could take it near 8.8068.
- On the lower side, support is seen at 8.6410, break below could take it till 8.6067.