EUR/SEK clinches daily highs above 10.2100
|- The Swedish Krona gives away some recent gains.
- The cross rebounds from recent 6-month lows near 10.16.
- Riksbank could still hike rates later this month or in February.
The Swedish Krona is trading on the defensive in the second half of the week, lifting EUR/SEK to fresh daily highs around 10.21, where sits the 55-hour SMA.
EUR/SEK upside capped around 10.21
SEK picked up pace on Wednesday following auspicious results from the domestic docket, showing Industrial Production expanding 2.8% MoM in October and 4.6% from a year earlier. In addition, Industrial New Orders also rose 3.1% on a yearly basis and Services PMI came in at 62.2 in November from 56.4 seen the previous month.
These positive results add to the uptick in manufacturing PMI during last month and released earlier in the week, all boding well for Q4 GDP and somewhat reinforcing the case for higher rates by the Riksbank.
Speaking about the Riksbank, Deputy Governor P.Jansson said yesterday that there is no reason to lift the current 2% inflation goal, while doubts remain on the timing of the rate hike (December or February).
EUR/SEK levels to consider
As of writing the cross is gaining 0.36% at 10.2236 and a break above 10.2761 (21-day SMA) would open the door to 10.3399 (200-day SMA) and finally 10.4354 (low Oct.30). On the flip side, the next support lines up at 10.1623 (monthly low Dec.5) seconded by 10.0956 (monthly low Jun.14) and then 10.0488 (monthly low Mar.20).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.