- USD/SEK remains stable at 10.69, trimming daily losses.
- Senior officials at the Federal Reserve maintain a cautious stance and are reluctant to rush into lowering interest rates.
- Investors are awaiting the FOMC's May Meeting Minutes, which will be released this Wednesday and will provide more detailed information on the Federal Reserve's monetary policy roadmap.
The USD/SEK pair is trading at 10.69, having fallen below the 100- and 200-day SMA, clearing all its daily losses. This is because the dollar remains firm following cautious comments from Federal Reserve (Fed) officials calling for patience in rate cuts.
In this sense, in a quiet week, comments from Federal Reserve officials are the highlight of each session and echo caution in the face of solid growth and persistent inflation in the US, which seems to rule out an immediate rate cut. Wednesday's FOMC meeting minutes are expected to show a deeper look at the Fed's planned roadmap, which could change expectations for the easing cycle. Later this week, on Thursday, weekly jobless claims numbers and S&P PMIs for May could trigger moves in the USD, and on Friday, durable goods orders data for April could offer more insight into the health of the American economy.
USD/SEK technical analysis
On the daily outlook, the RSI for the USD/SEK remains within the negative zone. The latest reading is just below 50, so a slight tilt towards sellers is projected. At the same time, the moving average convergence divergence (MACD) shows flat red bars, indicating continued negative momentum for the pair.
USD/SEK daily chart
Relative to the overall trend, the pair is below the 20-day SMA, but remains above the 100-day and 200-day SMA. This setup implies a mix of long-term uptrend and short-term downtrend. Notably, on Tuesday, buyers successfully defended the 100 and 200 day SMAs at 10.55 and 10.62, indicating that buyers remain resilient and if the bears fail to break above these levels, a bullish turn could be seen in the next session.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
