EUR/SEK flirting with session lows near 10.44 on data, Riksbank
|- The cross moves lower to the 10.44 region on Tuesday.
- The Riksbank published its Business Survey.
- Sweden Producer Prices rose 0.2% MoM in February.
The Swedish Krona is prolonging the auspicious start of the week and is dragging EUR/SEK to fresh daily lows in the 10.44 area.
EUR/SEK offered on data, Riksbank
The cross is retreating for the second session in a row today, as the Swedish Krona continues to trim part of the losses recorded in the second half of last week.
SEK has picked up extra pace today after Producer Prices in the Scandinavian economy rose at a monthly 0.2% during February and 6.3% from a year earlier. In addition, the Riksbank published its latest Business Survey.
In the survey, major Swedish companies see no signs of an imminent downturn, although they appear less optimistic regarding the future of the economic activity. In addition, the better tone in the exports sector continues to be bolstered by a relatively weak SEK and expansion in European and North American markets.
In the data space, Consumer and Manufacturing Confidence are due tomorrow along with Trade Balance figures and Household Lending Growth. Furthermore, Retail Sales will close the docket on Thursday.
What to look for around SEK
Fundamentals in the Nordic economy remain solid for the time being despite some deterioration in the domestic outlook and speculations that the Riksbank could stay ‘lower for longer’. However, the Scandinavian central bank did not ruled out a rate hike by year-end (yet). SEK is also facing extra headwinds as market participants consider it a funding currency when comes to carry trade.
EUR/SEK levels to consider
As of writing the cross is losing 0.10% at 10.4396 and a break below 10.4296 (55-day SMA) would expose 10.4076 (low Mar.21) and then 10.3730 (200-day SMA). On the flip side, the next up barrier aligns at 10.4969 (high Mar.22) seconded by 10.5064 (21-day SMA) and finally 10.6476 (2019 high Mar.8).
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