The USD/SEK currency pair extended losses to a 2-week low of 8.8416 on Wednesday ahead of US jobs and inflation data prints, which may provide fresh clues over the Fed’s monetary policy trajectory.
Employers in all sectors of the US economy, excluding farming, probably added 70,000 job positions in January, according to market consensus, following a job growth of 50,000 in December.
And, the unemployment rate probably remained steady at 4.4% in January.
San Francisco Federal Reserve President Mary Daly said last week that one or two additional interest rate cuts might be required to counteract weakness in the US labor market.
At the same time, US December retail sales fell short of market consensus, while indicating a slowdown in consumer spending and also reinforcing expectations of further policy easing by the Federal Reserve.
Markets are now pricing in a higher probability of three interest rate cuts this year, compared to two a week earlier.
Meanwhile, in Sweden, industrial production growth was reported to have picked up to 4.2% year-on-year in December from 3.1% YoY in the prior month.
Sweden’s manufacturing output grew 4.2% YoY in December, after a six-month low of 2.3% YoY in November. Growth in the sector was mostly driven by higher output for computer, electronic and optical products, up 30.3% YoY, as well as for electrical equipment, up 24.3% YoY.
The USD/SEK currency pair was last down 0.09% on the day to trade at 8.8630.
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