EUR/SEK Signals & Technical Analysis
About the EUR/SEK (EURO & Swedish Krona)
The EUR/SEK pair is the abbreviated term used for the Euro & Swedish Krona. This pair does not have a nickname. Before we get into the particulars, what exactly does the EUR/SEK rate mean? The exchange rate tells you how many EURO (the quote currency) are required to purchase one Swedish Krona (base currency). For example, if the pair is trading at 10.71 it means it takes 10.71 Russian Ruble to buy 1 âEuro"
Breaking Down âEUR/SEKâ
The euro (â¬; EUR) is the official currency of 19 of the 28 member states of the European Union. The euro is the second largest and second most traded currency in the foreign exchange market after the United States dollar. The euro is divided into 100 cents.
Whereas, Under the foreign currency exchange market place, SEK is the abbreviation for the Swedish krona which is the official currency of Sweden. it is one of the most top trading currencies in the world and accounts for about 2 percent of the Forex (FX) market. The exchange rate of SEK depends heavily on the monetary policy of Sweden. The country's central bank is known as the Sveriges Riksbank, the world's third oldest bank, and oldest central bank
Correlation is merely a mutual relationship or connection between two or more things.
Positive correlation â The positive relationship merely is when pairs move in tandem with each other.
In the forex world, USD/SEK, CHF/JPY, and SEK/JPY pairs are positively correlated
Negative correlation â In contrast, a negative relationship is when forex pairs move in the opposite direction, For example, CHF/JPY, SEK/JPY, and AUD/USD
Economic Events: The movement in the Europian and Swedish Krona events determine the exchange rates. Top of the line economic events includes GDP, Employment Change, Industrial Production, and Consumer Price Index. Better than forecast data increases the demand for related currency and impacts the value of either the Euro and Swedish Krona causing fluctuations in the EUR/SEK exchange rate.
Major Economic Events
Gross Domestic Product â the gross domestic product is the central measure of economic growth in the region.
Employment Change â The Sterling is also sensitive to changes in employment, as slacks in the labor market causes a drop in Inflation rates.
Consumer Price Index â Since one of the goals of the BOP is to maintain price stability, they keep an eye on inflation indicators such as the CPI. If the annual CPI deviates from the central
Industrial Production â This measures a change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
Political Events - Another critical factor is the political aspect. Instability, as seen in the Brexit referendum, can entirely change the direction of the currencies. So, stay up-to-date on the latest political and economic news.
What Determines the EUR/SEK exchange Rate?
Several factors can impact the EUR/SEK rate valuation, including:
ECB & SEK Monetary Policies: The European Central Bank & Sveriges Riksbank control the supply of money in the market, to keep the economy on track. A dovish policy, which is also known as expansionary policy, from either of the central banks, weakens the related currency. In contrast, a hawkish monetary policy (contractionary policy) strengthens the currency
The EUR/SEK is traded in amounts denominated in the US Dollar.
Standard lot Size: 100,000
Mini lot size: 10,000
One pip in decimals 0.0001
Pip Value: $1.05