The currency pair USD/SEK has much in common with other assets of the Scandinavian countries. It demonstrates steep bounces within the day. The given asset is capable of showing up to 900 points a day. As for the H1-H4 timeframes, on these periods it shows entirely predictable behavior.
The currency pair is reliant on iron ore prices because Sweden appears to be one of the leading exporters of this commodity. Moreover, the duo simultaneously duplicates the moves of the Swedish and Danish krona exchange rates. Currency pairs that involve Scandinavian monetary units move nearly the same.
We can define USD/SEK as an exotic currency with a direct exchange rate. The evergreen buck acts as the base currency in this pair, while the Swedish krone is a quoted one. The pair demonstrates a modest trading volume, which results in a higher spread than in other more popular pairs.
The currency pair is quite active during the European trading session. However, you can also observe high volatility during the American trading session. You can hardly note powerful bounces on Monday. Thursday is the day of the maximum volatility for this asset. Within the day, the pair behaves chaotically, making prediction a daunting task.
A considerable portion of American GDP is occupied by the trade and services sectors, accounting for up to 80%. The industrial sector holds the second position with 19.2%. As for agriculture, it contains no more than 1.5% in this country. International and domestic tourism matters too in the United States.
America sells and purchases large volumes of various products in foreign markets. Such countries represent major American partners as Mexico and Canada. All of these nations have signed a free trade pact, dubbed NAFTA. The most crucial trade partners of America also include the European Union and China.
The Swedish economy started actively developing after the end of World War II. Now it’s one of the most developed in the world. This economy has a mixed structure, where a considerable portion of the large-scale industry is public.
The services and trade sector represent the country’s GDP by 69%. The industry holds nearly 29%. As for agriculture in this country, its portion doesn’t exceed 2%. In general, it’s an export-oriented economy.
High-tech industries started rapidly developing in the country in the 1960s. At that time, the first companies producing electronics arose in Sweden. The engineering sector also demonstrated high rates of development. The most famous Swedish products include appliances, telecommunication equipment, as well as raw materials. EU members represent the country’s principal trade partners. The bulk of Swedish exports go to Finland, Norway, and Denmark.
Commodity markets have a powerful impact on this currency pair. To successfully trade this currency, one needs to take into considering the trade balance, interest rates, and unemployment in the United States and Sweden. Don’t forget to utilize technical analysis to determine optimal market entry and exit points. Make use of wise money management. Never risk more than 10% of your trading deposit.