3 Jul 2013
EUR/SEK bounces off lows after Riksbank
FXstreet.com (Edinburgh) - The Swedish krona has sharply appreciated against the single currency on Wednesday, dragging EUR/SEK to fresh lows after the Riksbank left unchanged the repo rate at 1.0%.
EUR/SEK drop short-lived
The Riksbank decision was in line with market expectations hence the current knee-jerk reaction of the cross is expected to be ephemeral. The high credit growth was the main reason behind the decision, where the board voted 4-2 in favour of a no-change in the benchmark rate although the new rate path points to a continuation of the easing bias.
EUR/SEK levels to watch
The cross is now up 0.05% at 8.7320 facing the next resistance at 8.9000 (high Jun.24) followed by 8.9945 (high Jun.8) and then 9.0454 (high Jun.7). On the downside, a break below 8.6830 (low Jul.1) would expose 8.6615 (MA30d) and finally 8.5635 (MA200d).
EUR/SEK drop short-lived
The Riksbank decision was in line with market expectations hence the current knee-jerk reaction of the cross is expected to be ephemeral. The high credit growth was the main reason behind the decision, where the board voted 4-2 in favour of a no-change in the benchmark rate although the new rate path points to a continuation of the easing bias.
EUR/SEK levels to watch
The cross is now up 0.05% at 8.7320 facing the next resistance at 8.9000 (high Jun.24) followed by 8.9945 (high Jun.8) and then 9.0454 (high Jun.7). On the downside, a break below 8.6830 (low Jul.1) would expose 8.6615 (MA30d) and finally 8.5635 (MA200d).