The USD/SEK currency pair settled above Friday’s low of 9.2850, its weakest level since March 2022, as concerns over a weakening US labor market outweighed inflation woes prior to the Federal Reserve’s policy meeting.
Annual headline consumer inflation in the US has picked up to 2.9% in August from 2.7% in July, in line with market consensus.
And, annual core CPI inflation has steadied at 3.1% in August.
Yet, initial jobless claims surged to 263,000 last week, indicating US labor market conditions softened markedly. The data followed last week’s employment report, which revealed a considerably slower than anticipated US job growth in August.
Markets are now pricing in about a 93% chance of a 25 basis point Fed rate cut next week and a 7% chance of a super-sized 50 basis point cut.
Meanwhile, Sweden’s annual consumer inflation has picked up to 1.1% in August from 0.8% in July, confirming the preliminary estimate.
Still, the latest reading has remained well below the Riksbank’s 2% target.
And, Sweden’s consumer price index with a fixed interest rate (CPIF), Riksbank’s target variable for inflation, went up 3.2% year-on-year in August – the sharpest increase since January 2024.
The exotic Forex pair lost 0.67% for the week.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
