EUR/SEK higher on downbeat GDP figures, around 9.7400

Pablo Piovano FXStreet

The Swedish Krona is sharply lower vs. its European peer on Tuesday, with EUR/SEK now deflating from daily highs and returning to the 9.7400 neighbourhood.

EUR/SEK higher on Swedish GDP

SEK met a wave of selling pressure after GDP figures released earlier today showed the economy expanded 0.4% QoQ and 2.2% on a yearly basis. Coming in short of expectations.

Additionally, retail sales surprised to the upside in April, up 1.3% inter-month and 4.5% YoY.

The cross is advancing for the first time after two consecutive daily pullbacks, including a test of 2-week lows in the boundaries of 9.7000 the figure seen last Friday.

Further data in Sweden will see the manufacturing PMI on Thursday and Q1’s current account on Friday. In the euro area, business climate came in at 0.9% in May, missing estimates, and consumer confidence improved to -3.0 from -4.0.

EUR/SEK levels to consider

As of writing the cross is gaining 0.31% at 9.7445 facing the next resistance at 9.7635 (high May 30) seconded by 9.7833 (high May 16) and finally 9.8018 (2017 high May 22). On the flip side, a breakdown of 9.7103 (20-day sma) would expose 9.6960 (low May 26) and then 9.6269 (200-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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