Scandinavian Kroner Declines Amid Dubai Debt Concerns

By Anton Eljwizat – Scandinavian markets were greatly affected by global events this past week. Swedish Krona headed for its second monthly depreciation versus the EUR, falling 0.5% to 10.4946 per EUR yesterday after Dubai’s government said Dubai World’s debt is not yet assured. The Krona also dropped 0.5% today to 6.9987 per Dollar.

Sweden’s economic activity declined by 5% in the 3rd quarter as business inventories exhibited a larger than expected drop. The result also weighed on the currency against the Dollar and EUR. The country’s gross domestic product however, grew by 0.2%. Overall, Sweden’s economy is now starting to stabilize.

Norway’s Krone also fell on concerns over Dubai’s plan to postpone debt repayments, posting its first monthly decline versus the EUR since June. The Krone fell 1.3% against the EUR in November and 0.6% against the Dollar in the month.

Technical analysis

• The chart below is the daily chart of the EUR/NOK currency pair.

• The indicators used are the Slow Stochastic, MACD/OsMA, and RSI.

• Point 1: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.

• Point 2: The RSI signals that the pair sits near the upper border, suggesting a downward correction may be imminent.

• Point 3: The MACD indicates an impending bearish cross, which may signal a downward movement is going to occur in the near future.

EUR/NOK Daily Chart

Forex Market Analysis provided by Forex Yard.

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