EUR/SEK dips to fresh lows post-Riksbank, around 9.91

The Swedish Krona is picking up pace vs. its European peer on Wednesday, with EUR/SEK briefly testing multi-day lows in the 9.8700 region in the wake of the Riksbank’s meeting.

EUR/SEK lower on Riksbank decision

The cross quickly dropped to fresh multi-day lows in the 9.8700 neighbourhood on Wednesday after the Riksbank left unchanged its refi rate at -0.50%, broadly in line with market expectations.

The Nordic central bank noted consumer prices are hovering near the 2% target, although it has revised lower its forecasts for inflation in the coming year. The Riksbank also said the domestic economic activity remains strong, but the accommodative stance in monetary policy should continue for the time being in order to gain stabilization in inflation.

At the same time, the Riksbank left unchanged its forecasts for gradual and small rate hikes likely to start in H2 2018.

In addition, money market players’ inflation expectations measured by Kanta Sifo Prospera are now seen at 2.0% in the first year, 2.1% in the second year and 2.0% in a 5-year’s time. Regarding the GDP, the economy is expected to expand 2.5%, 2.3% and 2.2%, respectively.

The repo rate is seen at -0.2% within a year’s view, 0.4% in 24-months and 1.6% in 60 months.

EUR/SEK levels to consider

As of writing the cross is losing 0.03% at 9.9133 facing the next down barrier at 9.8733 (low Feb.14) seconded by 9.8480 (21-day sma) and then 9.8037 (100-day sma). On the upside, a surpass of 9.9498 (high Feb.13) would aim for 10.0041 (2018 high Feb.9) and finally 10.0349 (2017 high Dec.11).