Recent movements on the market show that the prices of the USD/SEK currency pair are down 0.49%. This comes after a few days of an uptrend and the currency pair going up. There are several reasons for the current situation, one of them being the Covid-19 situation around the world.
Recently, the number of Covid-19 cases has increased significantly around the world, causing a lot of challenges for many countries around the world. Also, as the 2020 Presidential Election of the United States is coming up, the price of USD is very much unstable. Because of the changes in the market, many investors are having a hard time deciding what to do on the market, and not for the wrong reason.
Recently, Forex trading has become increasingly popular over the last few months. As the leading FX brokers in Sweden have reported, the number of people using their platforms have started increasing a lot, claiming that one of the major reasons for it is the Covid-19 pandemic, as a result of which, many people have decided to stay home.
Over the pandemic, Sweden was known to be not that harsh when it came to the regulations and restrictions, most of the country remained open during the pandemic, however, recent changes in the country indicate that there is a need for some restrictions. The representatives of the health sector of the country announced that because the situation in the country is getting worse, people will have to wear masks while using public transport, and there might be other regulations coming along the way.
The changing epidemiological situation in the country has become a reason for the leadership of Sweden to work on new plans to overcome the challenges that were created by the Covid-19 pandemic. At the same time, the situation is much worse in the United States, where the number of Covid-19 cases is increasing every moment. The USA remains to be the number one country with the number of Covid-19 cases.
Changing prices of USD/SEK
The chart above shows the changing prices of the currency pair over the last few months, starting in March, the beginning of the pandemic. As can be seen from the table, although the currency pair was going down in the middle of March, it has managed to recover very quickly and at the end of the month was doing very well. After this, however, the currency pair went down significantly over time, and until August, it continued its freefall. After this, it had some good days, bu tin general is very much lower than it was in early 2020.
At the end of October, the price of the currency pair went up significantly, and many experts were saying that the uptrend would continue in the future as well, but as the chart shows, the price went down once again. As of now, the experts are claiming that the price of the currency pair will remain unstable because of several factors, one of them being the upcoming presidential elections of 2020, which will have a huge impact on the prices of many currency pairs around the world.
Recently, when the first presidential debate of this year was held between Donald Trump and Joe Biden, it has proved to have a huge impact on the USD. Because of the shocking outcome of the debate, the price of USD went down significantly, also, quickly after the debate, President Trump tested positive for Covid-19, which lead to further complications.
Covid-19 Situation Around the World
The virus is spreading once again at a very fast pace, and the second wave of the virus is already in full force. Many countries around the world are announcing new restrictions to fight against the spread of the virus, while others are saying that the economies of their countries will not be able to survive another lockdown.
In France, in just 24 hours, more than 30,000 cases were reported, which has led the country to adopt further restrictions in big cities of the country. Sweden, which was very much against restrictions, is now thinking about adopting some restrictions to fight against the spread of the virus. As of now, the situation around the world is getting worse, and the number of Covid-19 cases around the world has surpassed 40 million.