EUR/SEK eases from daily highs near 10.20

  • EUR/SEK reverses the recent decline and approached 10.20.
  • Solid support emerges in the 10.10 region so far.
  • The Riksbank kept the policy rate unchanged at 0.00%.

The Swedish krona is giving away part of recent gains and motivates EUR/SEK to bounce off recent lows and approach the 10.20 region on Thursday.

EUR/SEK appears supported near 10.10

EUR/SEK posts decent gains following two consecutive daily drops on Thursday, including another test of the solid support in the 10.10 area.

In fact, the cross moves higher after the Riksbank kept the repo rate unchanged at 0.00% at its meeting. However, the Scandinavian central bank increased its QE programme to SEK 700 billion (from SEK 500 billion) and is now expected to run until end of 2021.

The Riksbank justified its decision to extend and increase its asset purchases in the impact on the economy of rising spread of the coronavirus coupled with tighter restrictions.

In addition, the central bank revised lower its forecasts for GDP and inflation and it now sees the economy contracting 4.0% this year and expanding 2.6% and 5.0% in 2021 and 2022, respectively. Regarding inflation, the CPI is projected to rise 0.4% in 2020, 0.8% in 2021 and 1.2% in 2022.

The repo rate is seen unchanged at least until end-2023.

EUR/SEK levels to consider

At the moment, the pair is gaining 0.36% at 10.1586 and a move above 10.2333 (21-day SMA) would target 10.2928 (high Nov.13) en route to 10.3474 (55-day SMA). On the downside, the next support aligns at 10.1020 (2020 low Nov.10) seconded by 10.1249 (monthly low Dec.31 2018) and finally 10.0945 (monthly low Jun.15 2018).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Fears will continue to support the dollar

The EUR/USD pair has lost some ground this week, trading in the 1.1700 price zone. Central banks are cautiously moving toward trimming their massive stimulus programs. Growth-related data suggests a steeper deceleration of economic progress.


GBP/USD: Rate laurels go the the US Federal Reserve

BOE leaves rates, asset purchases unchanged, warns on inflation. Federal Reserve and Chair Powell set the stage for bond taper. US Treasury rates move sharply higher after the FOMC meeting. GBP/USD drops below 1.3700 in Friday trading.


Gold remains vulnerable amid hawkish Fed outlook

Following the previous week’s decline, gold staged a rebound and closed in the positive territory on Monday and Tuesday. After reaching its strongest level since last Thursday’s sharp decline at $1,787 on Wednesday.

Gold News

PBoC imposes ban on crypto trading as it fosters ‘illegal financial activity’

PBoC bans crypto trading activities and a plethora of associated services, labeling it “illegal.” Overseas cryptocurrency exchanges providing services to Chinese residents will be investigated in accordance with the law. 

Read more

What's next?

As Q3 winds down and Q4 begins, the broad investment climate is being shaped by the turning of the monetary cycle.  Norway was the first, and New Zealand will be next.  It is not so much that these moves will force others to do the same.

Read more