The Swedish krona has responded positively to the election results

September 10, 2018 3:30 pmComments Off on The Swedish krona has responded positively to the election resultsViews: 20

Swedish kronaThe forex markets take a breath with relief after the elections in Sweden. The investors are once again turning to the local krona after the nationalist and anti-immigrant “Swedish Democrats” have received fewer votes than market participants were afraid of Sunday’s parliamentary elections.

As a result, the euro fell by 0.7% to 10.42 SEK. One dollar costs 9.02 SEK, down by 0.5%.

Participating in a government of Swedish Democrats would be a game-changer for the Swedish krona, but obviously this is not the case today.

Economists warned that the outcome is preparing the scene for an extended period during which major parties will struggle to form a viable government. But the outcome is unlikely to change the trajectory of monetary policy.

The former Finance Minister Anders Borg said the market reaction is an expression of relief.

“It’s a bit of relief for the established parties. Now I think economic policy will be somewhat of an autopilot and the market will also sigh with relief”, said Anders Borg.

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