EUR/SEK tests 2-day lows near 9.7400

The Swedish Krona has given away part of its initial gains on Wednesday, with EUR/SEK returning to the 9.7400 handle after bottoming out in weekly lows around the 9.7200 neighbourhood.

EUR/SEK finds support near 9.7200

SEK picked up extra pace today following the release of the TNS Sifo Prospera survey of inflation expectations in the Swedish economy, adding to recent gains in response to positive results from consumer prices in May.

According to today’s survey, inflation figures are seen rising at an annualized 1.7% in the first year (from 1.6%), 2.0% in two-year’s time (from 1.8%) and 2.1% in five years (from 2.0%).

Regarding GDP, the survey showed the economy is expected to expand 2.6% in a year’s time, 2.4% in the second year and 2.3% in the longer run.

The survey also showed money market players’ expect the repo rate to climb to -0.2% in 12-months, 0.3% in 24-months and 1.7% in 60-months.

In the meantime, the up trend in the cross stays well and sound so far, with EUR/SEK coming down from 2017 tops above 9.8100 seen earlier in the week and with SEK’s performance always under the Riksbank’s microscope.

EUR/SEK levels to consider

As of writing the cross is losing 0.04% at 9.7421 and a breakdown of 9.7145 (76.4% Fibo of 9.3922-9.8141) would expose 9.6960 (low May 26) and then 9.6725 (55-day sma). On the upside, the immediate barrier is located at 9.8052 (high Jun.8) seconded by 9.8141 (2017 high Jun.8) and finally 9.8525 (high Nov.28 2016).