The Swedish Krona is sharply higher vs. its European peer on Thursday, sending EUR/SEK to fresh lows in the 9.50 neighbourhood.
EUR/SEK weaker on higher CPI
SEK has quickly appreciated today after inflation figures in the Nordic economy showed the CPI rose above expectations during December. In fact, consumer prices have rise at a monthly 0.5% and 1.7% over the last twelve months.
Following suit, the CPIF (CPI at constant interest rates) rose 0.5% inter-month and 1.9% on a yearly basis. Previously, the unemployment rate in Sweden ticked higher to 7.8% in the last month of 2016, up from 7.6%.
In addition, the Riksbank minutes showed the central bank now expects to start its tightening cycle in early 2018, with inflation figures seen around 2% in mid-2018. Furthermore, members noted the uncertainty around SEK in a context with extra ECB QE and rate hikes by the Federal Reserve.
EUR/SEK levels to consider
As of writing the cross is retreating 0.40% at 9.5130 and a break below 9.4992 (low Jan.12) would expose 9.4693 (low Sep.8) and then 9.4337 (low Aug.24). On the other hand, the next up barrier lines up at 9.5945 (high Jan.10) ahead of 9.6060 (20-day sma) and finally 9.6139 (high Dec.30).
- R3 9.6281
- R2 9.6091
- R1 9.5825
- PP 9.5635
- S1 9.5369
- S2 9.5179
- S3 9.4913