USD/SEK declines further after mixed US S&P PMIs and hawkish Riksbank hold

The USD/SEK pair witnessed a 0.30% drop, hovering around the 10.452 level.
Mixed S&P PMIs make the US struggle to gather demand.
Riksbank's hawkish hold on Thursday strengthened the SEK as the bank didn’t rule out a hike in 2024.

Patricio Martín FXStreet

The Swedish Krona (SEK) is gaining ground against the US Dollar (USD) in Friday's trading session, with the pair trading near the 10.452 region seeing 0.30% losses. The pair’s movements were driven by mixed US S&P PMI data and a hawkish hold from the Riksbank.

In line with that, the Riksbank kept the policy rate unchanged at 4% in November but has indicated the possibility of raising it at the beginning of 2024. The bank also noted that "inflation has fallen and inflationary pressures have clearly eased", but it left the door open for further hikes in case data justifies it, a similar position taken by the Federal Reserve (Fed).

On the USD side, the US private sector experienced marginal growth, as reflected by the steady S&P Global Composite PMI at 50.7. While the Manufacturing PMI slightly dipped into contraction at 49.4, the Services PMI witnessed a small rise to 50.8. The negative highlight was that it was recorded as the first employment decrease in US service and manufacturing sector, and this outlook weakened the US Dollar.

Regarding the Fed expectations, markets are confident that the bank will not hike in December and are already betting on four rate cuts in 2024, starting in May. That being said, the incoming data will determine the bank’s easing calendar as it still remains data-dependent.

USD/SEK levels to watch

On the daily chart, indicators indicate that a consolidation may be incoming as the Relative Strength Index (RSI) is flat in oversold territory. Normally, this would suggest an impending price rebound as it hints that selling momentum weakens, further supported by the Moving Average Convergence Divergence (MACD), which displays flat red bars.

Additionally, the pair is currently positioned below the 20,100 and 200-day Simple Moving Averages (SMAs), pointing to short and long-term bearish pressures and an overall selling dominance.

Support Levels: 10.350, 10.200, 10.150.
Resistance Levels: 10.520, 10.600, 10.670 (200-day SMA).

USD/SEK daily chart

USD/SEK

Overview
Today last price	10.4475
Today Daily Change	-0.0451
Today Daily Change %	-0.43
Today daily open	10.4926

Trends
Daily SMA20	10.8195
Daily SMA50	10.9467
Daily SMA100	10.8445
Daily SMA200	10.6901

Levels
Previous Daily High	10.5186
Previous Daily Low	10.399
Previous Weekly High	10.9163
Previous Weekly Low	10.5148
Previous Monthly High	11.2275
Previous Monthly Low	10.8482
Daily Fibonacci 38.2%	10.4729
Daily Fibonacci 61.8%	10.4447
Daily Pivot Point S1	10.4215
Daily Pivot Point S2	10.3505
Daily Pivot Point S3	10.3019
Daily Pivot Point R1	10.5411
Daily Pivot Point R2	10.5897
Daily Pivot Point R3	10.6607

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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