02 Dec 2020 05:45
The EUR/SEK currency pair is a popular one on Forex market. Since Sweden carries on an active trade with the European Union, the experienced traders choose this trading instrument due to the high stability and predictability of the eurozone and Sweden's economies. The most intense EUR/SEK bidding is observed during the European sessions.
The pair is the cross rate against the U.S. dollar. It is obvious that there is no U.S. dollar in this currency pair, however, the euro and the Swedish krona fall under its strong influence. To make it clear, just combine EUR/USD and USD/SEK charts in the same price chart, and you will get the approximate EUR/SEK chart.
The U.S. dollar affects severely both currencies. Thus, for a better prediction of the future rate movement of this currency pair you need to consider the main indicators of the U.S. economy such as the interest rate, GDP, unemployment, new workplaces indicator and many others. Do not forget that the currencies listed above may respond variously to the changes in the economic situation of the United States. Sweden is one of the leading countries in the world, that outclasses the other Nordic countries like Denmark, Norway, and Finland. The high economic development is provided not only by the large reserves of natural resources such as iron ore, nonferrous metals, timber, and large hydropower resources, but also by the well qualified specialists in all economic sectors.
Besides, Sweden is the world's largest manufacturer of engineering products, as well as the major supplier of iron ore, steel, and paper. The majority of Swedish products is sold abroad. Therefore, the economy of Sweden is heavily dependent on the export volume. Furthermore, the country's economic state depends on the world's prices for major energy resources such as oil and natural gas. So the steep prices on the market may have an effect on the Swedish national currency rate.
Keep in mind that spread for the cross rates is usually higher than for more popular currency pairs. Hence, before you start dealing with the cross currency pairs, study properly the broker's conditions for this specified trade instrument.