EUR/SEK flirting with tops above 9.5300

The Swedish Krona is depreciating further vs. its European peer on Thursday, pushing EUR/SEK to the upper end of the range beyond the 9.5300 handle.

EUR/SEK higher post-Riksbank decision

SEK accelerated its downside today after the Riksbank decided to leave the repo rate unchanged at -0.50% at today’s meeting, broadly in line with markets expectations.

The Riksbank noted that inflation remains close to the 2% target and considered appropriate to keep the monetary accommodation unchanged for the time being, expecting the key rate to move up around mid-2018, as in the previous statement.

The central bank also argued that its bond-buying programme will continue during the rest of the year, as per the latest decision at the April meeting.

The Riksbank, however, acknowledged the solid pace of the Nordic economy, strong employment figures and the up trend in consumer prices, which have been higher than expected.

EUR/SEK levels to consider

As of writing the cross is up 0.28% at 9.5385 facing the next up barrier at 9.5651 (high Aug.29) seconded by 9.5893 (38.2% Fibo of the June-September drop) and finally 9.6005 (200-day sma). On the flip side, a breakdown of 9.5170 (21-day sma) would aim for 9.4969 (10-day sma) and then 9.4504 (low Sep.1).