EUR/SEK bounces off lows near 10.6500

• EUR/SEK rebounds from earlier lows at 10.6500.
• Sweden Q1 GDP surprised to the upside today.
• The economy expanded 0.6% QoQ in Q1.

The Swedish Krona has quickly given away initial gains and is now pushing EUR/SEK back to the positive territory near 10.7200.

EUR/SEK reverses the drop to 10.65

SEK moved to fresh 4-week highs vs. its European peer in the wake of strong prints from the GDP figures published earlier in the session. The appreciation of the Krona, however, was short-lived and prompted the cross to reverse the mood and re-focus on the upside.

In fact, the Nordic economy expanded at a quarterly 0.6% during the January-March period and at an annualized 2.1%, both prints coming in above initial estimates.

In the meantime, SEK has resumed the erratic performance so far this week amidst mixed data releases and poor prospects from the NIER survey seen on Tuesday. It is worth recalling that, according to the survey, both consumer sentiment and manufacturing sentiment remains fragile and opens the door for further weakness in the upcoming months as well as extra pressure on household spending.

EUR/SEK levels to consider

As of writing the cross is gaining 0.07% at 10.7114 and a break above 10.7398 (21-day SMA) would aim for 10.8008 (high May 21) and then 10.8498 (2019 high May 13). On the other hand, the next support lines up at 10.6517 (low May 29) followed by 10.6476 (high Mar.8) and finally 10.5708 (55-day SMA).