EUR/SEK advances to multi-day tops above 9.7400

The Swedish Krona continues to lose ground vs. its European peer on Wednesday, now sending EUR/SEK to fresh daily tops above the 9.7400 handle.

EUR/SEK stronger ahead of Riksbank

The cross is posting gains for the second consecutive session so far, managing to reach fresh multi-day peaks around the 9.7400 handle and to trade at shouting distance from 2016 tops beyond 9.7600 the figure (October 12).

SEK remains under pressure ahead of the Riksbank meeting due tomorrow. Market consensus sees the Nordic central bank leaving the key rate unchanged at -0.50%.

Earlier in the European morning, the Swedish Debt Office said it expects the GDP to expand 3.3% during 2016 and 1.9% in 2017 and 1.8% in 2018. It has also added that lower borrowing/refinancing requirements reduce the possibility to purchase more bonds by the Riksbank.

Further data in Sweden saw the trade surplus at SEK 3.2 billion during September, reverting the previous SEK 9.40 billion deficit.

EUR/SEK levels to consider

As of writing the cross is up 0.16% at 9.7347 and a break above 9.7424 (high Oct.26) would aim for 9.7612 (2016 high Oct.12) and finally 9.9757 (monthly high May 2010). On the other hand, the next support lines up at 9.6793 (20-day sma) followed by 9.6749 (low Oct.21) and then 9.5834 (55-day sma).