EUR/SEK testing daily highs near 9.5100

The Swedish Krona is sharply lower vs. its European peer at the end of the week, sending EUR/SEK to the upper end of the range near 9.5100 the figure.

EUR/SEK up on Riksbank

SEK met further downside pressure following comments by First Deputy Governor of the Riksbank Kerstin af Jochnick, who emphasized the positive effects on the Nordic economy of the central bank’s current expansionary monetary policy, mainly regarding GDP prospects and declining unemployment.

K. af Jochnick also noted that domestic inflation is picking up in response to a weaker currency and the stronger economic activity. Regarding the recent Brexit vote and its potential implications on the Swedish economy, he argued that the impact is seen to be limited.

EUR/SEK levels to consider

As of writing the cross is gaining 0.33% at 9.5096 and a breakout of 9.5300 (high Aug.8) would aim for 9.5914 (high Jun.24) and then 9.6163 (2016 high Feb.11). On the downside, the immediate support aligns at 9.4333 (55-day sma) followed by 9.4003 (low Aug.11) and finally 9.3271 (200-day sma).