EUR/SEK flirting with 2019 highs around 10.43
|- The pair moves higher to the 10.4300 area, closer to yearly highs.
- Services PMI dropped to 54.1 for the month of January.
- Industrial New Orders expanded 2.4% YoY in December.
The softer tone in the Swedish Krona is now helping EUR/SEK to advance to the area of yearly peaks beyond the 10.4300 handle.
EUR/SEK weaker post-PMI
The cross is up for the third session in a row today, all amidst the broader 6-week rally since late-December lows in the 10.1200 region.
SEK met further downside pressure today after the domestic Services PMI dropped to 54.1 during the first month of the year (from 55.8), while on the brighter side, Industrial New Orders expanded 2.4% in December from a year earlier.
SEK has been under increasing downside pressure since late-December, particularly after the Riksbank delivered a ‘dovish’ hike and opened the door for a more neutral stance in the next months. This more dovish stance has been somewhat reinforced by some slowdown in domestic fundamentals in past weeks despite the overall healthy indicators in the Scandinavian economy.
EUR/SEK levels to consider
As of writing the cross is gaining 0.02% at 10.4090 and a break above 10.4329 (2019 high Feb.4) would expose 10.5363 (monthly high Oct.11 2018) and then 10.5665 (high Sep.14 2018). On the other hand, the immediate support lines up at 10.3440 (10-day SMA) followed by 10.3417 (low Feb.1) and finally 10.3384 (200-day SMA).
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