EUR/SEK flirting highs near 9.6900 on Riskbank

The Swedish Krona is depreciating further vs. the single currency so far this week, now lifting EUR/SEK to the vicinity of  9.6900 the figure, or daily tops.

EUR/SEK up post-data, Riksbank

SEK met extra selling pressure after the Riksbank minutes noted that all members deemed as appropriate to keep the key rate unchanged at last meeting, while no rate hikes are seen until mid-2018. Furthermore, many members considered extending the bond purchase programme, while three members expressed reservations on the subject.

In addition, board member Cecilia Skingsley said the central bank continues to monitor the FX markets and stays ready to act if SEK threatens inflation. She also said the there are ‘good conditions’ to clinch the inflation target.

In the data space, the Swedish jobless rate dropped to 7.5% during April from March’s 7.7%. Furthermore, the usual survey on inflation expectations by TNS Sifo Prospera noted the CPI is seen rising at an annualized 1.7% during the first year, 1.9% during the second year and 2.0% in the fifth year, matching April’s readings. Regarding the GDP, the survey expects it to expand 2.8% in the first year vs. 2.7% previous.

EUR/SEK levels to consider

As of writing the cross is up 0.23% at 9.6891 and a surpass of 9.6955 (high May 9) would aim for 9.7134 (high May 4) and finally 9.7189 (high May 5). On the other hand, the next support lines up at 9.6653 (low May 10) followed by 9.6436 (low May 8) and then 9.6289 (20-day sma).