steve.jarvis's picture

Now that the Swedish election is over, continuation of bearish trend for the Krona?

It has been Election Year in Sweden and the Krona has been one of weakest currencies around.  Losses have been particularly pronounced against the US Dollar (click chart below), but it has also undergone a significant depreciation against the likes of the Euro and Norwegian Krone.  The Election has finally been staged, with the ruling Conservatives having been ousted after 8 years in power. What now for the Swedish Krona?

I previously wrote about the Swedish Krona on 29th August.  At that time I commented  "One Currency which I've had in the bearish category now for many months is the Swedish Krona, and for much of this time it's actually been ranked 10th of 10.  If anything, it now shows signs of starting to weaken significantly once again following a period of relatively stability, during which time it retraced a significant part of multi-month losses against the EURO, but without coming out of a major downtrend phase against the unified Currency. The SEK's trend against the US Dollar and Norwegian Krone remains firmly down".

         Click chart to enlarge

Since that time, there has been some further weakness against the Euro, whilst against the US Dollar it's losses have continued almost unabated.  It has actually recovered some ground against the Norwegian Krone which has suffered at the hands of a continued decline in the price of Oil.  The underlying bearish trend for the Swedish Krona shows no immediate signs of being reversed and we see the prospect of further weakness towards year-end at least and possibly into the first part of 2015.