EUR/SEK leaps to 9.96 on downbeat CPI
|- Swedish Krona depreciated to lows near 9.96 post-CPI.
- Inflation figures in Sweden missed estimates in January.
- Riksbank Floden is expected to speak later in the day.
The Swedish Krona is depreciating further vs. its European peer on Tuesday, lifting EUR/SEK to test the area of daily highs in the boundaries of the 9.9600 handle.
EUR/SEK higher post-CPI
SEK lost extra momentum today after inflation figures in the Scandinavian economy came in below consensus for the month of January.
In fact, consumer prices tracked by the CPI contracted at a monthly 0.8% (vs. -0.7% forecasted) and advanced 1.6% on a yearly basis (vs. 1.8% expected.
Furthermore, CPIF (CPI at constant interest rates) dropped 0.9% inter-month and 1.7% over the last twelve months.
The now move lower in the Krona could follow market expectations of a rate hike by the Riksbank later than initially expected in response to inflation losing upside momentum in recent months. In addition, the Nordic central bank keeps monitoring the housing market.
Later in the session, Deputy Governor M.Floden is due to speak.
EUR/SEK levels to consider
As of writing the cross is up 0.40% at 9.4961 facing the next up barrier at 9.9585 (high Feb.20) seconded by 10.0041 (2018 high Feb.9) and finally 10.0349 (2017 high Dec.11). On the other hand, a breach of 9.8751 (low Feb.19) would expose 9.8648 (21-day sma) and then 9.7419 (2018 low Jan.31).
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