The EUR/SEK pair is the abbreviated term used for the Euro & Swedish Krona. This pair does not have a nickname. Before we get into the particulars, what exactly does the EUR/SEK rate mean? The exchange rate tells you how many EURO (the quote currency) are required to purchase one Swedish Krona (base currency). For example, if the pair is trading at 10.71 it means it takes 10.71 Russian Ruble to buy 1 “Euro"

EUR/SEK Technical Analysis: Buy or Hold Today?

The EUR/SEK exchange rate has been on a strong upward trend in recent months, and is currently trading at 11.74400. The pair is up by a whopping 5.94% since the start of 2023, and 10.144 % up for the last 12 months and 4.99% up for the last 3 months. This makes it one of the best-performing forex pairs of 2023.

Technical analysis suggests that the EUR/SEK pair is currently in a strong buy trend. The majority of indicators are pointing towards a buy signal, and the moving averages are all in an upward direction. There are only a few indicators that are showing a neutral or sell signal, but these are being outweighed by the other indicators.

If the EUR/SEK pair breaks above the 11.80 level, it could continue to rise towards the 12 level. However, if the pair falls below the 11.60 level, it could reverse course and head lower.

Overall, the technical analysis suggests that the EUR/SEK pair is currently in a strong buy trend. However, there is some potential for a pullback in the short term.

Here are some factors to consider when making a trading decision:

• The economic outlook for the Eurozone and Sweden.
• The interest rate differential between the two regions.
• The political situation in both regions.
• The risk appetite of investors.

The EUR/SEK exchange rate is currently in a strong buy trend. However, there is some potential for a pullback in the short term.

Breaking Down EUR/SEK

The euro (€; EUR) is the official currency of 19 of the 28 member states of the European Union. The euro is the second largest and second most traded currency in the foreign exchange market after the United States dollar. The euro is divided into 100 cents.

Whereas, Under the foreign currency exchange market place, SEK is the abbreviation for the Swedish krona which is the official currency of Sweden. it is one of the most top trading currencies in the world and accounts for about 2 percent of the Forex (FX) market. The exchange rate of SEK depends heavily on the monetary policy of Sweden. The country's central bank is known as the Sveriges Riksbank, the world's third oldest bank, and oldest central bank

Currency Correlations

Correlation is merely a mutual relationship or connection between two or more things.

Positive correlation – The positive relationship merely is when pairs move in tandem with each other.

In the forex world, USD/SEK, CHF/JPY, and SEK/JPY pairs are positively correlated

Negative correlation – In contrast, a negative relationship is when forex pairs move in the opposite direction, For example, CHF/JPY, SEK/JPY, and AUD/USD

Economic Events: The movement in the Europian and Swedish Krona events determine the exchange rates. Top of the line economic events includes GDP, Employment Change, Industrial Production, and Consumer Price Index. Better than forecast data increases the demand for related currency and impacts the value of either the Euro and Swedish Krona causing fluctuations in the EUR/SEK exchange rate.

Major Economic Events

Gross Domestic Product – the gross domestic product is the central measure of economic growth in the region.

Employment Change – The Sterling is also sensitive to changes in employment, as slacks in the labor market causes a drop in Inflation rates.

Consumer Price Index – Since one of the goals of the BOP is to maintain price stability, they keep an eye on inflation indicators such as the CPI. If the annual CPI deviates from the central

Industrial Production – This measures a change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.

Political Events - Another critical factor is the political aspect. Instability, as seen in the Brexit referendum, can entirely change the direction of the currencies. So, stay up-to-date on the latest political and economic news.

What Determines the EUR/SEK exchange Rate?

Several factors can impact the EUR/SEK rate valuation, including:

ECB & SEK Monetary Policies: The European Central Bank & Sveriges Riksbank control the supply of money in the market, to keep the economy on track. A dovish policy, which is also known as expansionary policy, from either of the central banks, weakens the related currency. In contrast, a hawkish monetary policy (contractionary policy) strengthens the currency

EUR/SEK Specifications

The EUR/SEK is traded in amounts denominated in the US Dollar.
Standard lot Size: 100,000
Mini lot size: 10,000
One pip in decimals 0.0001
Pip Value: $1.05