- Analytics
- News and Tools
- Market News
- SEK/JPY: It is time to fade the rally – TDS
SEK/JPY: It is time to fade the rally – TDS
Economists at TD Securities think it is time to fade the rally in SEK/JPY, highlighting a few key drivers that should push the cross lower in the next 1-2 months.
USD/JPY is getting close to the “no fly zone”
For one thing, while the Riksbank looks ready to hike and remove QT, that is already priced in. What's more, they probably have the least wiggle in the G10 to dial up the hawkish rhetoric.SEK's growth expectations have been aggressively downgraded recently. Its economy remains one of the most rate-sensitive of the G10 currencies we track, highlighting the high level of floating-rate mortgages. It also lacks a savings buffer to cushion the impact from higher mortgage rates, leaving the economy more vulnerable.
SEK/JPY HFFV also sits near 12.9 and MRSI implies an even deeper correction. Besides the SEK leg, we also think USD/JPY is getting close to the ‘no fly zone’, increasing the risks of intervention or a BoJ policy tweak this summer.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
