25 Feb 2015
EUR/SEK testing lows near 9.5000
FXStreet (Edinburgh) - The Swedish krona is sharply appreciating vs. the single currency on Wednesday, sending EUR/SEK to the 9.5000 neighbourhood.
EUR/SEK lower after Riksbank
The cross is trading on a softer tone following the minutes from the Riksbank. The Nordic central bank said that a recovery overseas could reinforce the domestic economic activity and that inflation figures seem to have bottomed out somehow, although further downside risks still persist due to declining oil prices.
The board agreed that further monetary easing is needed in order to lift long term inflation expectations and to favour a return of consumer prices towards the central bank’s target. In addition, members voted unanimously to cut rates into negative ground and the majority of the board voted for the implementation of a bond-buying programme of SEK 10 billion.
The minutes also stated that the Riksbank remains ready to adopt further measures should the situation require it.
EUR/SEK key levels
The cross is now losing 0.10% at 9.5160 with the next support at 9.5010 (low Feb.20) ahead of 9.4880 (low Feb.18) and then 9.4670 (50-d MA). On the flip side, a breakout of 9.5810 (high Feb.19) would open the door to 9.6894 (high Feb.12) and finally 9.7297 (high Dec.16).
EUR/SEK lower after Riksbank
The cross is trading on a softer tone following the minutes from the Riksbank. The Nordic central bank said that a recovery overseas could reinforce the domestic economic activity and that inflation figures seem to have bottomed out somehow, although further downside risks still persist due to declining oil prices.
The board agreed that further monetary easing is needed in order to lift long term inflation expectations and to favour a return of consumer prices towards the central bank’s target. In addition, members voted unanimously to cut rates into negative ground and the majority of the board voted for the implementation of a bond-buying programme of SEK 10 billion.
The minutes also stated that the Riksbank remains ready to adopt further measures should the situation require it.
EUR/SEK key levels
The cross is now losing 0.10% at 9.5160 with the next support at 9.5010 (low Feb.20) ahead of 9.4880 (low Feb.18) and then 9.4670 (50-d MA). On the flip side, a breakout of 9.5810 (high Feb.19) would open the door to 9.6894 (high Feb.12) and finally 9.7297 (high Dec.16).