The USD to SEK exchange rate currently shows a bearish bias, influenced by a stronger SEK outlook. The key drivers include:
- The Federal Reserve's expected rate cuts could weaken the USD, contrasting with Sweden's stable policy and improving growth projections.
- Rising global economic growth and commodity prices may bolster the SEK as demand increases.
- The Riksbank's cautious yet supportive stance contributes to Sweden's economic recovery, with predictions of GDP growth rising notably in 2026.
In the near term, the USD to SEK is expected to remain within a stable range, influenced by ongoing economic data and central bank directions. Upside risks include unexpected strong US economic data or delays in rate cuts, while downside risks may arise from a sharp increase in SEK strength or improved global risk sentiment, impacting USD demand.