USD/SEK holds resilient and defends key SMAs
|- USD/SEK is holding steady at 10.69 and cleared daily losses.
- High-ranking members of the Federal Reserve maintain a cautious stance, resisting rushing into rate cuts.
- Investors await FOMC's meeting minutes for May this Wednesday, which will provide deeper insights into the Federal Reserve's policy roadmap.
The USD/SEK pair trades at 10.69, after falling below the 100 and 200-day Simple Moving Averages (SMAs) clearing all of its daily losses. This is due to the USD holding its ground on the back of cautious comments of the Federal Reserve (Fed) officials which ask for patience on rate cuts.
In that sense, on a quiet week, Federal Reserve official's comments are the highlight of each session and they echoe caution in the face of robust growth and persistent inflation in the US, seeming to rule out immediate rate cuts. The expectation is that this Wednesday's FOMC meeting minutes might reveal deeper insight into the Fed's expected roadmap which could change the expectations of the easing cycle. Later this week, on Thursday, weekly Jobless Claims figures and S&P PMIs from May might trigger movements on the USD and Friday’s Durable Goods orders data from April as they might give further insights into the health of the US economy.
USD/SEK technical analysis
In the daily overview, the Relative Strength Index (RSI) for USD/SEK remains within negative zone. The latest reading is just below the 50 mark, thus projecting a slight inclination towards sellers. Concurrently, the Moving Average Convergence Divergence (MACD) demonstrates flat red bars, indicating a steady negative momentum for the pair.
USD/SEK daily chart
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