EUR/SEK finds support near 9.80 post-CPI

After a brief test of lows near 9.8000, EUR/SEK has gathered traction and is now flirting with daily tops beyond the 9.8600 handle.

EUR/SEK stronger post-CPI

The Swedish Krona lost initial vigour after inflation figures in the Nordic economy rose at an annualized 1.2% during October and 0.3% inter-month, matching initial estimates albeit higher than September’s 0.9% and 0.2%, respectively.

The cross is recovering part of the ground lost at the beginning of the week after finding strong support around Monday’s 3-week lows in the 9.8000 neighbourhood.

Looking ahead, Swedish unemployment rate is expected to tick higher to 6.3% during October (Thursday), while SEK is expected to remain under pressure in light of the recent sell-off in the EM space and the likeliness of further easing by the Riksbank.

EUR/SEK levels to consider

As of writing the cross is up 0.30% at 9.8608 and a break above 10.0096 (high Nov.7) would expose 10.0907 (high Nov.9). On the other hand, the next support lines up at 9.7899 (low Nov.14) followed by 9.6967 (55-day sma) and then 9.6011 (100-day sma).