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USDSEK Forecast – December-14-2023

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FxNews – The currency pair experienced a bearish movement, successfully breaking below the support zone. This key demand area, extending from 10.31 to 19.27, now serves as resistance. Additionally, the Awesome Oscillator bars have turned red, indicating the strength of this bearish trend. Consequently, the next target for USDSEK appears to be the July low, which is around the 10.17 mark.

USDSEK Forecast - December-14-2023

USDSEK Forecast – Daily Chart

US Treasury Yields Drop Following Fed’s Rate Cut Signal

Bloomberg – After the Federal Reserve indicated a larger-than-expected rate cut of 75 basis points for the next year, the US 10-year Treasury yield dipped below 4%. This is its lowest point since late July, marking a significant shift from the September projections. In December, the Fed maintained interest rates, aligning with predictions. However, the Federal Open Market Committee’s (FOMC) Summary of Economic Projections revealed a forecasted funds rate of 4.6% by the end of the coming year, a decrease from the previously estimated 5.1%.

Consequently, market expectations for a reduction in borrowing costs as early as March have risen to nearly 73%. In tandem, the 2-year yield, more responsive to the Fed’s policy changes, dropped to 4.3%, a level last seen in early May.

  • 14 December 2023
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