Currency Charts: EUR to SEK

The euro and the Swedish krona have only recently become popular with traders. The instrument is often seen as a substitute for cross pairing with the Swiss franc.

Interesting facts

Euro Swedish Krona (EUR/SEK) is by no means the most popular trading instrument. Nevertheless, this is a rather exciting cross that traders undeservedly bypass.

The krone can be quite volatile, especially in illiquid times, which makes it a useful currency for scalpers who prefer to remove margins from sharp fluctuations.

Sweden has undergone many changes, especially in the last century. Now it is one of the most technologically advanced countries in the world, as well as one of the richest.

She started with the agricultural economy a couple of centuries ago, but thanks to massive production, she took a leading position in the world industry. Also on the territory of the country are such world-famous trading giants as IKEA and Volvo.

One of the keys to building a developed economy was maintaining neutrality during the wars of the 20th century. Equally important is the fact that the government has done everything for the active development of small and medium-sized businesses.

Sweden is also famous for preparing highly professional personnel in demand around the world and provides one of the best bases for teaching technical and mathematical specialties.

The country does not exclude the possibility of joining the single currency of the EU, but when this happens is not known. In 2003, a referendum was held, which showed that the population is not ready to abandon national money.

The government respected the opinion of the people and decided not to put this issue to a universal vote anymore. In any case, until this initiative comes directly from the public.

Sweden has free access to hydropower and has a vast forest, automotive, and pharmaceutical industries. IT is also actively developing.

One of the latest innovations in the industry was Spotify. The developer has implemented a convenient file transfer system using cloud storage.

How to trade

Perhaps because Sweden did not accept the euro, the economy was not so painfully affected by the global financial crisis. The country had its problems with the economy in the 1980s, but the reasonable and coordinated actions of the government and the national bank helped to deal with the issues.

Sweden is currently thriving thanks to a significant increase in iron ore exports to China. Gross domestic product is increasing, and the trade balance is in positive territory.

Since the country depends on international trade, it cannot be protected from global consequences, and the kroon is still closely connected with both European markets and America, especially with the S&P 500 index and oil prices.

SEK tends to increase when market sentiment improves and weaken during economic shocks. This is because a prolonged decline in international trade significantly reduces Sweden’s exports.

However, the euro is in many ways in worse shape, and the currency seems to be limping from one crisis to another. It is tough for the European Central Bank to ensure consistent control over the EUR.

This is due to too different EU conjuncture. In the eurozone, there are both overdeveloped economies and degrading ones. For example, Greece only miraculously avoided default and forced the ECB to sacrifice the stability of the euro.

At the same time, traders should know that Riksbank, which controls Sweden’s repo rate, sometimes intervenes to prevent the continued strengthening of SEK, which creates a certain degree of unpredictability.

It is not surprising that the charts of this currency pair show a steady weakening and a downward trend, which indicates a general strengthening of the Swedish currency against the euro.

Although this is the general tendency, when you count on spread to this currency pair, it is necessary to focus attention on proximate analysis to calculate the time of entrance and output. If you look at the graph for this pair Forex, you will see that it reacts well to the technical indicators.

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