EUR/SEK in highs near 9.7500 post-Riksbank

After an ephemeral test of the 9.6800 area, EUR/SEK has quickly reverted the drop and climbed to fresh daily tops near 9.7500 the figure.

EUR/SEK stronger on steady Riskbank

SEK is depreciating further after the Riksbank left its monetary status quo unchanged at today’s meeting, with the repo rate at -0.50%, as broadly expected.

The Riksbank now expects the inflation to take longer to reach the bank’s target, although it has noted the continuing upturn of the domestic economy.

The Nordic central bank now estimates the repo rate would need to stay at current levels for another six months, longer than initially estimated. In addition, it said the likeliness of further rate cuts has now increased while it could extend the purchases of sovereign bonds in December.

The Riksbank now sees the economy expanding at an annualized 3.3% this year (vs. 3.2% previous), 2.0% in 2017 (from 2.2%) and 2.4% in 2018. Regarding inflation, the central bank has revised lower its September projections, and now sees the CPI rising 1.0% in 2016, 1.4% and 2.2% in 2017 and 2018, respectively.

EUR/SEK levels to consider

As of writing the cross is up 0.22% at 9.7427 and a break above 9.7548 (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 9.6749 (low Oct.21) followed by 9.5886 (55-day sma) and then 9.5237 (100-day sma).