EUR/SEK sharply lower post-GDP data

The Swedish Krona has gathered extra traction on Tuesday, sending EUR/SEK to fresh lows in levels below the 9.5600 mark.

EUR/SEK weaker post-data

The cross met further downside pressure after Swedish GDP figures have surprised to the upside, showing the economy has expanded 1.0% QoQ during the October-December 2016 period. On an annualized basis, the GDP expanded 2.3% (vs. 2.4% exp.).

Further data from the Swedish docket saw Retail Sales rising 1.3% inter-month during January and 2.2% over the last twelve months, while January’s trade balance figures showed a SEK 1.5 billion surplus, reverting December’s SEK 0.80 billion trade deficit.

The cross is thus reverting the recent rally, which seems to have found a strong resistance at recent tops in the boundaries of 9.6000 the figure on the back of the recent dovish stance from the Riksbank and softer than expected inflation figures during last month.

EUR/SEK levels to consider

As of writing the cross is losing 0.39% at 9.5591 and a breakdown of 9.5386 (55-day sma) would aim for 9.4925 (low Feb.24) and then 9.4811 (20-day sma). On the other hand, the next resistance lines up at 9.5991 (high Feb.27) followed by 9.6558 (100-day sma) and finally 9.6647 (high Dec.26 2016).