USD falls against SEK, GBP and JPY

The dollar was little changed against the other G10 currencies at midday, falling noticeably against only the SEK, GBP and JPY.

USD/SEK was the biggest gainer among the G10. Higher-than-expected unemployment figures for March had only a momentary impact; USD/SEK jumped to 6.6100 from 6.600 immediately following the numbers, but within half an hour it was back to where it began and it continued moving lower. This confirms the relatively strong demand for SEK that we saw yesterday, when SEK was also the biggest gainer during the European day. One possibility: the move may be driven by safe-haven flows out of Russia by people who want to keep their money in Europe but not all in EUR. Whatever the motive, the recent resilience of SEK suggests to me that there is latent demand for the currency and it may strengthen further. GBP also gained without any particular news behind it; that too could be a diversification move that can last longer.

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