We’ve all heard the stories, some of us may have even in the presence of the actual phenomenon itself, but even after having seen it with our own eyes we may find it difficult to believe – we may know that brothers and sisters are often quite different from one another, but twins? We somehow expect twins to be, well – twin like in every phase of their lives.
Some may say that Norway and Sweden are sort of like Scandinavian twins and while they may share a great many similarities, do not let their appearance mislead you, the two countries are in fact not that similar especially when considering each economy and comparing them against each other.
Trading in Swedish Krona binary options is similar to some aspects of the USD/NOK pairing, but one should not assume that the conditions that impact one will impact the other in the same way, or even impact it in any way.
Both Sweden and Norway have extremely large government sectors, that are amongst the primary employers in the country, primarily as a result of various social welfare plans that benefit residents, those plans require a higher than normal number of people – Sweden for example has some of the best teacher to student ration across the entirety of its school system, which requires a great number of public school teachers for every level, from kindergarten onwards.
But where Norway relies mostly on the export of oil as a means of sustaining its economy Sweden has been using and developing other areas on which it relies, for instance – the Swedish economy has a far greater percentage of high tech companies and employees from Ericsson to Electrolux, Skype and Spotify, Sweden is also home to a great number of world famous brands such as IKEA and H&M.
Sweden also exports Iron ore, timber and quite a bit of the hydro power it produces is diverted to neighboring countries.
As we have mentioned above, those are the main differences between the Swedish and Norwegian economies, but there are parallels running between them – chief among them being the destinations for export – the UK + EU are near exclusive trade partners, so, as one would tend to do with the NOK, one should pay very close attention to those trade partners and their economies. Any changes in their ability to purchase commodities and goods from Sweden will have an almost immediate impact on the local economy.
Seeing as the SEK is so closely tied to the status of the Euro and the UK pound, trading in any pairing that contains the SEK tends to follow the fortunes of those currencies, while the impact may be secondary it can still be rather widespread, as was the case with recent troubles that have impacted the EU financial systems, Sweden was spared most of these troubles since it chose not to adopt the Euro as its currency, and thus, not to join the EU itself as a full member.
Relying on USD/SEK binary options is a little like assembling something made by IKEA – it may be confusing at first, but once all the pieces are in place – it looks very nice indeed.