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Swedish krona weaken

keep dropping vs other currencies

Localer
post 28.Sep.2014, 02:39 PM
Post #1
Location: Stockholm
Joined: 27.Oct.2006

Will Swedish krona keep dropping to lower and lower ? like back in 2010 ? where 1 USD = 8 kr ? or worse, more then 8 kr or hits 9 kr ?

Now its already 1 usd = 7.3

Swedish economy is collapsing soon or later with the amount of households debt.
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Model T Ford
post 29.Sep.2014, 11:41 AM
Post #2
Joined: 31.May.2013

Yes, the Swedish krona is losing value to the US dollar, but it is good for the Swedish economy, one based highly on quality exports, as it makes them cheaper for potential purchasers.
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skogsbo
post 29.Sep.2014, 11:46 AM
Post #3
Joined: 20.Sep.2011

The drop will have more to do with the Soc Dem government, investors and businesses don't like their tax policies. Also their very slim victory (if you call it that), investors don't like risk and uncertainty. Their budget is yet to be published and far from being approved. Re-election is not impossible either.

Would you invest in Sweden right now? would you set up a big import/export contract... or would you sit it out for few months and see where the dust settles?
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Model T Ford
post 29.Sep.2014, 12:20 PM
Post #4
Joined: 31.May.2013

Just shows your anti-social democratic bias, Skogsbo, as there is a great demand for Swedish government bonds and Swedish stocks are doing quite well, as the former yield is at a near record low, and stocks are near their record high.

And people with cash should diversify their holding so that when one currency goes up, another goes down.
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LLHope
post 29.Sep.2014, 03:25 PM
Post #5
Location: Stockholm
Joined: 1.Jan.2014

QUOTE (Localer @ 28.Sep.2014, 01:39 PM) *
Will Swedish krona keep dropping to lower and lower ? like back in 2010 ? where 1 USD = 8 kr ? or worse, more then 8 kr or hits 9 kr ?Now its already 1 usd = 7.3Swedish econom ... (show full quote)

The SEK weakening was partially due to the uncertainty of the election and whether a minority government could/can be formed and be effective. It will indirectly strengthen once the government is in place and budget is approved, since it is expected that traditional centre-left public over-spending will not be as excessive as normal since they are in minority and will have to find the balance.

However, that is only part of the reason, the main reason, against the USD, is that the USD itself is strengthening due to recent data showing an accelerating US economy and increased confidence especially from small to mid-sized businesses. The strengthening of the USD is also exaggerated somewhat because of the poor economic data coming out from Europe which means USD will strengthen against Euro and other European currencies.

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skogsbo
post 29.Sep.2014, 03:49 PM
Post #6
Joined: 20.Sep.2011

QUOTE (Model T Ford @ 29.Sep.2014, 12:20 PM) *
Just shows your anti-social democratic bias, Skogsbo, as there is a great demand for Swedish government bonds And people with cash should diversify their holding so that when ... (show full quote)

evidence? Although no one will doubt the governments ability to honour it's bonds. But that is very different to business investment.

QUOTE (LLHope @ 29.Sep.2014, 03:25 PM) *
However, that is only part of the reason, the main reason, against the USD, is that the USD itself is strengthening due to recent data showing an accelerating US economy and i ... (show full quote)

euro has gained ever so slightly on the SEK. The pound has gained more, but that's primarily the after math of the Scottish election.

Instability reigns in most places just now.
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Model T Ford
post 29.Sep.2014, 03:54 PM
Post #7
Joined: 31.May.2013

Instead of prevaricating as usual, why don't YOU look up how Swedish bonds and stocks are doing?
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sv100
post 29.Sep.2014, 04:03 PM
Post #8
Joined: 4.Jan.2014

QUOTE (skogsbo @ 29.Sep.2014, 03:49 PM) *
evidence? Although no one will doubt the governments ability to honour it's bonds. But that is very different to business investment.euro has gained ever so slightly on th ... (show full quote)


Skogsbo,

You are obviously anti- social democrats , then you miss Mr.Bald .

I think that Mr.Bald was nice with Employers , cause he gave them the maximum authority to play with folk .
Bye bye Mr. Bald , he was good hand for US in Sweden .
He sold the country , and just imported more refugees .
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sv100
post 29.Sep.2014, 04:40 PM
Post #9
Joined: 4.Jan.2014

Every where , there is uncertainty in any transitional stage between two governments .
So this weak krona is a natural impact .
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skogsbo
post 29.Sep.2014, 04:50 PM
Post #10
Joined: 20.Sep.2011

QUOTE (Model T Ford @ 29.Sep.2014, 03:54 PM) *
Instead of prevaricating as usual, why don't YOU look up how Swedish bonds and stocks are doing?

which means you haven't got a clue. You said they were doing well, I presume you know this from evidence.

I have no idea. YoY released today showed a 4%+ rise in the retail sales, higher than forecast (3.4%) So somebody is spending, comforting buying probably after the election!

http://www.investing.com/rates-bonds/sweden-government-bonds right now though, all the short terms bonds are falling, especially those within a few months. Probably a sign that there is little faith in this government and the ones that hold steady are those that will mature in future governments.

SV100 - take note above. It's not just me who doesn't like the future government of Sweden. People who invest in Sweden don't like it either. Without investment, you have less growth and jobs, regardless of the boss man being bald or a welder.
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skogsbo
post 29.Sep.2014, 04:52 PM
Post #11
Joined: 20.Sep.2011

QUOTE (sv100 @ 29.Sep.2014, 04:40 PM) *
Every where , there is uncertainty in any transitional stage between two governments . . So this weak krona is a natural impact .

true, but not true. Look at the charts for the pound as trend over the past 2 months. You can massive movement on news, but also a rapid climb following the Scottish election. Had the Alliance returned to power for a third term, the stability would have been reflected in the markets. Right now, there is caution and no shortage of it.
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Model T Ford
post 29.Sep.2014, 06:00 PM
Post #12
Joined: 31.May.2013

I did look up the figures about interest rates on bonds, and stock averages were about 1390, the highest being the low 1500s, and interest on gov't. bonds is 1.35%, the lowest having been 1.15%.

You are just too lazy and arrogant to look up for yourself.
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sv100
post 29.Sep.2014, 06:17 PM
Post #13
Joined: 4.Jan.2014

QUOTE (skogsbo @ 29.Sep.2014, 04:52 PM) *
true, but not true. Look at the charts for the pound as trend over the past 2 months. You can massive movement on news, but also a rapid climb following the Scottish election. ... (show full quote)

True is true . It's normal things for investors in the transitional stage .
Everywhere , same thing , uncertainty .
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Model T Ford
post 29.Sep.2014, 06:53 PM
Post #14
Joined: 31.May.2013

I would hardly think the weakening of the krona would be a complaint of ex;pats, as it would mean that English speaking ones would see their money income rise.

I remember when I came to Sweden, I got ten Krona for my US dollar investments. When I left, it was well below 7 krona, making the sale price of the row house a real nest egg for me. My dollar investment yields don't have to be converted into crowns now.

Only anti-socialist ex-pats would complain.
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köttbulle med sås
post 29.Sep.2014, 08:36 PM
Post #15
Location: Sweden
Joined: 6.Aug.2014

Thats infact good news! As long as I do not have a PN I am not entitled to a debit card from my SE Bank (sad but true)...so I must use my bankcard from Belgium (which is in euros). And if the Krona weakens they charge me LESS euros for my purchases:-)

PLS go down more SEK!!!! yes.
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