EUR/SEK Slumps to 2016 Lows Post-Riksbank
The Swedish krona is now rapidly appreciating vs. its European peer, dragging EUR/SEK to the 9.1200 area.
EUR/SEK lower on Riksbank’s QE
The
cross met further and increasing selling pressure after the Riksbank
left its key interest rate unchanged at 0.50% at today’s meeting.
However, the Nordic central bank has announced it will purchase
government bonds for further SEK 45 billion during the second half of
the current year.
The Riksbank reiterated its
readiness to add further stimulus to the economy, although it deemed
that event as ‘less likely’, “as economic activity strengthens and
inflation approaches the target”.
The central bank now sees the
CPI rising 1.0% in 2016 and 1.9% in 2017, a tad lower than previous
forecasts, while it expects the GDP to expand 3.7% in 2016 and 2.7% in
2017.
EUR/SEK levels to consider
As of
writing the cross is down 0.28% at 9.1572 and a break below 9.1165 (2016
low Apr.21) would aim for 9.0904 (low Jun.29 2015) and then 9.0552 (low
Mar.12 2015). On the other hand, the next hurdle lines up at 9.2117
(high Apr.18) ahead of 9.2304 (20-day sma) and finally 9.2940 (10-day
sma).
