Is Swedish krona ready to rebound as gold and silver retreat?

Is Swedish krona ready to rebound as gold and silver retreat?

By Erik Norland, Senior Economist, CME Group

When will Sweden’s sinking krona hit bottom?

  • Swedish krona has tumbled against euro and US dollar
  • Negative deposit rates have not improved Sweden’s economy
  • Shrinking trade surplus could be a key factor behind krona’s decline
  • Could a government fiscal stimulus help the krona bounce back?
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Gold and Silver options pointing to a pullback?

  • After posting double-digit gains, gold and silver prices have retreated
  • Out-of-the-money options had indicated the declines were coming
  • Options remain positively skewed, signaling further falls in gold, silver
  • But steep rate cuts, weaker US dollar could reinstate bullish sentiment
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