Sweden: Weak labour market data – TD Securities


According to Jacqui Douglas, chief European macro strategist at TD Securities, today's labour market data of Sweden was exceptionally weak, with the unemployment rate jumping from 7.2% to 7.4% in August (mkt 6.8%).

Key Quotes

“The u-rate was sitting at 6.0% as recently as April; while the data can volatile, and especially so in the summer months, this trend goes well beyond choppy data.”

“In fact, the rise in the unemployment rate is on par with the speed of deterioration at the beginning of the financial crisis, and the banking and housing crisis in the early 1990s. This doesn't mean that it's bound to continue in that direction, but it is shaping up to be more serious than the rise in the unemployment rate that we saw in 2002-2004 that did not result in a recession.”

“We see two main takeaways:

  • While the Riksbank was surprisingly hawkish at its last meeting, we believe that it will have to back away from its plans to raise rates around the turn of the year.
  • It's worth keeping a closer eye on the housing market going forward, after the unrelenting rise increase in debt/income ratios over the last several years. Job losses raise the risk of an unhappy ending to the housing market run.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD drops below 1.11 amid upbeat US data, trade concerns

EUR/USD is trading below 1.11 after robust US housing figures and solid consumer sentiment figures were published. Earlier, the common currency suffered from the concerns of new US tariffs on the EU.

EUR/USD News

GBP/USD down 100 pips after UK retail sales badly disappoint, amid USD strength

GBP/USD has plunged below 1.3050 after UK retail sales badly disappointed with a fall of 0.6% in December, on top of downward revisions. Odds of a BOE cut have risen.

GBP/USD News

Crypto market hyperspace mode On

The secondary actors of the crypto-sphere awaken and rally hard. Leading coins battle with greater resistance at the gates of a full bullish market. The only risk is an over-shoot, but that sentiment remains neutral.

Read more

Gold looks to close week flat below $1560

The XAU/USD pair climbed to a fresh daily high of $1560 in the early trading hours of the American session but struggled to preserve its momentum.

Gold News

USD/JPY: Losing bullish momentum but retaining gains

Chinese encouraging data kept markets in risk-on mode at the beginning of the day. The US January Michigan Consumer Sentiment Index is seen at 99.3, matching December figure. USD/JPY holding at the upper end of its weekly range could correct lower.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures