EUR/SEK tumbles to 3-week lows near 10.22
|- The Swedish Krona appreciated to multi-week tops.
- The cross drops to fresh lows in the boundaries of 10.20.
- Riksbank said there is no reason to move inflation target.
The Swedish Krona has picked up extra pace on Tuesday and is now dragging EUR/SEK to the area of multi-week lows near 10.2200.
EUR/SEK down on Riksbank comments
SEK is trading in fresh 3-week peaks vs. its European peer on Tuesday following hawkish comments from Riksbank’s officials earlier in the session.
In fact, Deputy Governor of the Riksbank Per Jansson said that there is no reason to raise the central bank’s inflation target in the short term despite the recent underperformance of consumer prices in the Scandinavian economy.
In addition, Jansson noted that the economy in general and data developments have not been as positive as expected as of late, while he deemed as premature any speculation of a rate hike this month or in February.
In the docket, it is worth mentioning that the manufacturing PMI came in above estimates at 56.7 in November and the Current Account surplus shrunk to SEK 38.6 billion in Q3 from SEK 4.1 billion in the previous quarter.
EUR/SEK levels to consider
As of writing the cross is losing 0.12% at 10.2220 facing the next support at 10.2080 (monthly low Nov.13) seconded by 10.2273 (monthly low Jul.30) and then 10.2103 (monthly low Jul.5). On the upside, a break above 10.2869 (21-day SMA) would open the door to 10.3390 (200-day SMA) and finally 10.4354 (low Oct.30).
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