The USD to SEK exchange rate shows a bearish bias, with expectations of a weaker USD in the near term.
Key drivers include:
- The Federal Reserve is anticipated to implement several rate cuts by mid-2026, contributing to a lower USD value.
- Positive growth forecasts for Sweden, with GDP expected to rise significantly in 2026, supporting the SEK.
- A projected decline in the US Dollar Index, driven by valuation and economic policy shifts, is also likely to hurt the USD's standing.
Over the next few months, the USD to SEK rate may trade within a stable range, reflecting recent patterns.
An upside risk could emerge from unforeseen stronger economic data in the US, potentially leading to a revision of the Fed's easing plans. Conversely, a downside risk is the ASEAN plan to reduce reliance on the USD, which may put additional pressure on the dollar.