13 Feb 2015
EUR/SEK consolidates above 9.60
FXStreet (Edinburgh) - The Swedish krona keeps depreciating vs. its European peer on Friday, sending EUR/SEK beyond the 9.6300 level.
EUR/SEK still under the effects of the Riksbank
The cross is trading in sub-9.6500 levels and retracing part of the spike to the vicinity of 9.7000 following the rate cut by the Riksbank on Thursday. It is worth recalling that the Nordic central bank lowered its repo rate to -0.10% from 0.0%, stepping into negative ground for the first time ever. In the same direction, it has announced purchases of SEK 10 billion in government bonds through February-March. The measures aim to counteract the declining consumer prices in the domestic economy.
In the data space today, Swedish Capacity Utilization expanded 0.5% during the fourth quarter, leaving behind the previous 0.4% contraction.
EUR/SEK levels to consider
The cross is now up 0.29% at 9.6377 with the next hurdle at 9.6894 (high Feb.12) followed by 9.7297 (high Dec.16) and then 9.7880 (high May 26 2010). On the downside, a break below 9.5280 (high Feb.9) would expose 9.4650 (low Feb.12) and finally 9.4330 (50-d MA).
EUR/SEK still under the effects of the Riksbank
The cross is trading in sub-9.6500 levels and retracing part of the spike to the vicinity of 9.7000 following the rate cut by the Riksbank on Thursday. It is worth recalling that the Nordic central bank lowered its repo rate to -0.10% from 0.0%, stepping into negative ground for the first time ever. In the same direction, it has announced purchases of SEK 10 billion in government bonds through February-March. The measures aim to counteract the declining consumer prices in the domestic economy.
In the data space today, Swedish Capacity Utilization expanded 0.5% during the fourth quarter, leaving behind the previous 0.4% contraction.
EUR/SEK levels to consider
The cross is now up 0.29% at 9.6377 with the next hurdle at 9.6894 (high Feb.12) followed by 9.7297 (high Dec.16) and then 9.7880 (high May 26 2010). On the downside, a break below 9.5280 (high Feb.9) would expose 9.4650 (low Feb.12) and finally 9.4330 (50-d MA).