13 Feb 2014
EUR/SEK climbs to 8.8200 on Riksbank
FXStreet (Edinburgh) - The dovish stance from the Riksbank today is allowing the EUR/SEK to return to the 8.8200 handle, printing a 2-day high at the same time.
EUR/SEK stronger after Riksbank decision
The Swedish central bank left the repo rate unchanged today at 0.75%, in line with expectations, although the subsequent statement was on the dovish camp, hurting the SEK. The central bank now estimates the first rate hike in early 2015, leaving enough time for domestic consumer prices to resume the up trend. “While it may be too soon to completely rule out the chances of further Riksbank policy action, one factor that is arguing against another Swedish rate cut this cycle is the high level of household debt… A round of better economic data in the coming weeks could send EUR/SEK back to support at the 200 day sma (currently at 8.7559). We maintain a 12 mth forecast of EUR/SEK8.60”, suggested Jane Foley, Senior Currency Strategist at Rabobank.
EUR/SEK key levels
The cross is now up 0.35% at 8.7995 with the next resistance at 8.8800 (high Jan.24) ahead of 8.9450 (high Jan.9). On the flip side, a violation of 8.8560 (30-d MA) would allow for 8.7955 (low Feb.3).
EUR/SEK stronger after Riksbank decision
The Swedish central bank left the repo rate unchanged today at 0.75%, in line with expectations, although the subsequent statement was on the dovish camp, hurting the SEK. The central bank now estimates the first rate hike in early 2015, leaving enough time for domestic consumer prices to resume the up trend. “While it may be too soon to completely rule out the chances of further Riksbank policy action, one factor that is arguing against another Swedish rate cut this cycle is the high level of household debt… A round of better economic data in the coming weeks could send EUR/SEK back to support at the 200 day sma (currently at 8.7559). We maintain a 12 mth forecast of EUR/SEK8.60”, suggested Jane Foley, Senior Currency Strategist at Rabobank.
EUR/SEK key levels
The cross is now up 0.35% at 8.7995 with the next resistance at 8.8800 (high Jan.24) ahead of 8.9450 (high Jan.9). On the flip side, a violation of 8.8560 (30-d MA) would allow for 8.7955 (low Feb.3).