The EUR/SEK will fail to breakout from a downtrend channel resis

The pair will fail to break out from a downtrend channel resistance line, sending the pair lower towards its previous low. Sweden recorded coronavirus infections more than the total cases reported from other Nordic countries. This was due to its decision to keep its economy and borders open and to develop herd immunity among its citizens. Meanwhile, the Swedish government’s refusal to lock down the country resulted in its GDP staying in green territory. Sweden’s first-quarter GDP YoY saw growth at 0.4%. Analysts are expecting Stockholm to report negative gross domestic product results for Q2 as the lockdown in the EU infected its businesses. The EU was the second epicenter of the coronavirus pandemic after China. Most of its member states already lifted several restrictions to recover revenue losses during the lockdown. However, a robust recovery is not expected as the EU’s economy is already struggling prior to the pandemic.