Swedish Krona loses further ground as EURSEK moves higher to fresh tops in the 10.61 area on Thursday following the dovish message from the Riksbank. Nevertheless, what levels should traders consider?
6 September, OctaFX – The Scandinavian central bank ruled out a rate hike at the October meeting, favouring instead a 25 bp hike at the December or February meetings.
EURSEK Moves Higher to Fresh Tops
SEK printed fresh lows in the 10.61 area vs. its European peer after the Riksbank kept its monetary stance unchanged at today’s gathering, with the repo rate intact at -0.50%.
The Riksbank noted the robust pace of the economic activity in the Nordic economy, adding that inflationary pressures still remain moderate when excluding energy prices.
The central bank considered that some monetary accommodation is still needed in order to sustain the economic activity and push prices higher.
Furthermore, Governor Ohlsson voted for a rate hike while Deputy Governor Floden made a reservation.
EURSEK levels to consider
As of writing the cross is gaining 0.59% at 10.5925 and a breakout of 10.6087 (high Sep.6) would expose 10.6124 (200-hour SMA) and then 10.6956 (high May 3). On the other hand, the next support is located at 10.5296 (21-day SMA) seconded by 10.5191 (low Sep.4) and finally 10.4020 (55-day SMA).
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