USD/SEK extends gains as Swedish services growth slows

The USD/SEK currency pair extended recent gains on Wednesday, after data showed Sweden’s services sector growth had slowed and as market players awaited a speech by Fed Chair Jerome Powell later in the day to evaluate the central bank’s future policy trajectory.

Another highlight this week will be the key US Non-Farm Payrolls report that may offer more insight into macroeconomic conditions.

Employers in all sectors of the US economy, excluding farming, probably added 200,000 job positions in November, according to market consensus, following a job growth of 12,000 in October.

Yesterday data showed US job openings had risen at a faster than expected pace in October, suggesting continuing labor market resilience.

Markets are now pricing in about a 73% chance of a 25 basis point rate cut at the Federal Reserve’s December meeting. About 80 basis points of Fed rate cuts are now expected by the end of 2025.

Meanwhile, the latest data out of Sweden showed that the services sector growth had decelerated in November. The Services PMI came in at a reading of 50.9 in November, falling from a revised up 53.1 in October, as the order intake sub-index dropped markedly, while the employment and delivery time sub-indexes increased.

The USD/SEK currency pair was last edging up 0.18% to trade at 11.0114. The exotic Forex pair was holding near a one-week high of 11.0391.