EUR/SEK challenges lows sub-9.7300

The Swedish Krona is now gathering pace vs. its European peer, with EUR/SEK coming down to test fresh lows near 9.7280.

EUR/SEK lower on Riksbank, inflation

SEK has picked up extra pace after October’s TNS Prospera survey showed inflation expectations in the Nordic economy has ticked higher for the current year to 1.4% from 1.3%, stayed unchanged at 1.7% in 2017 and eased to 1.9% from 2.0% in 2018.

In addition, a somewhat hawkish Riksbank’s Business Survey for the month of September has added to SEK buying. In fact, the central bank’s survey noted that the economic situation is good although expectations of future situation have become subdued in recent months, adding that uncertainty has been swelling as of late.

In the meantime, the cross has turn negative for the day, reverting the initial upside after hitting fresh 2016 highs in levels last seen in May 2010 just above the 9.7600 handle.

EUR/SEK levels to consider

As of writing the cross is losing 0.15% at 9.7339 and a break above 9.7612 (2016 high Oct.12) would open the door to 9.9757 (monthly high May 2010) and finally 10.5374 (monthly high November 2009). On the other hand, the next support lines up at 9.6192 (20-day sma) followed by 9.4693 (low Sep.8) and then 9.4748 (100-day sma).