EUR/SEK challenges lows in sub-9.50 levels

The Swedish Krona is gathering traction vs. its European peer on Wednesday, now sending EUR/SEK to the area of daily lows in the sub-9.50 region.

EUR/SEK lower post-inflation report

The cross is navigating multi-day lows after inflation expectations gauged by TNS Prospera survey showed consumer prices are seen higher for the upcoming years, adding to the recent steady stance from the Riksbank and allaying fears of further easing.

In fact, the survey showed the CPI is expected to rise at an annualized 1.6% this year (vs. 1.5% prev.), 1.9% in 2018 (vs. 1.8% prev.) and 2.0% in 2019 (vs. 1.95 prev.).

In addition, TNS Prospera expects the economy to grow 2.5% during the current year and 2.2% during 2018 and 2019. The survey also sees the benchmark rate at -0.3% within 12 moths, 0.3% in 24 months and 1.8% in 60 months.

Later in the week, the Swedish calendar includes Producer Prices, Unemployment Rate and Trade Balance figures (Thursday) followed by Consumer Confidence and Retail Sales (Friday).

EUR/SEK levels to consider

As of writing the cross is retreating 0.11% at 9.4843 and a break below 9.4708 (low Jan.24) would expose 9.4327 (low Jan.16) and then 9.4003 (monthly low Aug.11). On the other hand, the next up barrier lines up at 9.5125 (high Jan.24) ahead of 9.5376 (200-day sma) and finally 9.5693 (high Jan.16).