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).