EUR/SEK slumps to lows near 9.7100 on CPI

The Swedisk Krona is ahrply higher vs. its European peer on Tuesday, now dragging EUR/SEK to fresh lows in the 9.7100 area.

EUR/SEK weaker post-CPI

The cross has faded part of Monday’s up tick following ‘in line’ inflation figures in Sweden during November.

In fact, consumer prices tracked by the CPI rose 1.4% over the last twelve months and came in flat on a monthly basis. Further data saw the CPIF (CPI at constant interest rates) rising 1.6% YoY and 0.1% inter-month.

SEK should become under increasing pressure in light of the Riksbank monetary policy meeting on December 21, with market consensus leaning towards an extension of the bond-buying programme and a 10 bp rate cut, taking the refi rate to -0.60%.

EUR/SEK levels to consider

As of writing the cross is retreating 0.21% at 9.7187 and a break below 9.6853 (low Dec.12) would expose 9.6619 (100-day sma) and then 9.5677 (low Oct.3). On the other hand, the next up barrier lines up at 9.7537 (high Dec.12) ahead of 9.7715 (55-day sma) and finally 9.8521 (high Dec.1).