EUR/SEK: Krona’s near-term outlook remains grim – ING

FXStreet Insights Team FXStreet

Losses in the Krona over the past week have exceeded those of any other G10 currencies. Economists at ING note that SEK recovery path remains very narrow, and almost fully dependent on market dynamics.

It is up to the market to turn the tide for the Krona

“The near-term outlook remains grim and it will almost entirely be up to market dynamics to change the tide for the Krona.”

“We think EUR/SEK could trade within a volatile 11.40/11.60 range into and shortly after the 29 June Riksbank meeting.”

“The best news for SEK would probably be an upside surprise in May inflation numbers, that could help the Riksbank sound more hawkish.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD holds losses below 1.3400 amid escalating US-Iran tensions

GBP/USD finds some support near 1.3370 after a modest gap-down opening, though it lacks bullish conviction and remains below 1.3400. The pair suffers from a return of haven demand for the US Dollar amid renewed US-Iran military attacks and the resultant closure of the Strait of Hormuz. All eyes remain on Mideast updates and central bank talks.

EUR/USD battles 1.1400 amid USD strength, Iran risks

EUR/USD stays defensively close to 1.1400 in European trading on Monday. The pair faces headwinds as the US Dollar starts the week on a strong note on increased safe-haven appeal, following the weekend escalation between the US and Iran. However, hawkish ECB expectations limit the major's downside ahead of speeches from the Fed and ECB policymakers.

Gold seems vulnerable amid Iran risks reviving inflation fears, Fed hike bets

Gold maintains its offered tone through the Asian session, and currently trades just above $4,050, down nearly 1.40% for the day. A further escalation of tensions between the US and Iran, along with the closure of the Strait of Hormuz, lifts crude oil prices and revives inflation fears. This, in turn, bolsters expectations of higher interest rates by the US Federal Reserve, which benefits the safe-haven US Dollar, and drives flows away from the bullion.

Cardano: Ongoing whale accumulation fails to halt downward correction

Cardano (ADA) extends its losses, trading below $$0.160 after falling over 14% in the previous week. Despite on-chain data showing continued accumulation by whales, the buying activity has failed to lift prices. Meanwhile, bearish derivatives metrics and a weakening technical outlook indicate further downside for ADA.

The US won't default on $39 trillion debt: Why financial repression is coming and Gold is the only hedge

As the US national debt surges past $39 trillion, policymakers face an unsustainable economic trajectory that threatens the global financial system. With a formal default out of the question and fiscal austerity politically unfeasible, the US government is increasingly likely to rely on financial repression, artificially keeping interest rates below inflation to erode the real value of its debt.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.