EUR/SEK flirting with highs above 9.5500

The Swedish Krona has quickly climbed to fresh 2-day lows vs. the single currency on Wednesday, lifting EUR/SEK to fresh tops beyond the 9.5500 handle.

EUR/SEK higher post-inflation expectations

The cross has gathered extra traction after the publication of the quarterly survey of inflation expectations by TNS Sifo Prospera.

In fact, the survey shows that consumer prices gauged by the CPI is now seen at 1.6% within a year’s time (vs. 1.4% prev.), 1.8% in two years (vs. 1.7% prev.) and 2.0% in five years (vs. 2.0% prev.).

Regarding GDP, the survey now expects the economy to expand 2.6% within a year’s time (unch.) 2.5% in two years (unch.) and 2.4% in five years (vs. 2.5% prev.).

In addition, SEK remains under pressure after Riksbank’s Ingves said on Tuesday that it is important that SEK does not appreciate too fast.

In the meantime, the cross is advancing after two consecutive pullbacks, extending the rebound from yesterday’s fresh 3-week lows in the 9.4800 neighbourhood.

EUR/SEK levels to consider

As of writing the cross is gaining 0.41% at 9.5527 facing the next hurdle at 9.5785 (200-day sma) followed by 9.6314 (high Mar.10) and finally 9.6382 (100-day sma). On the flip side, a breakdown of 9.5102 (55-day sma) would aim for 9.4802 (low Mar.14) and then 9.4300 (low Feb.15).