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EUR/SEK dips to lows post-CPI

FXStreet (Edinburgh) - The Swedish krona is now rapidly gaining traction following the release of the CPI figures in Sweden, taking EUR/SEK to fresh lows in the 9.2430 area.

EUR/SEK weaker on CPI

The cross has seen its downside renewed after Swedish inflation figures have surprised markets to the upside during September. In fact, domestic consumer prices have risen 0.4% inter-month and 0.1% on a yearly basis. Further data showed the CPI at constant interest rates following suit, up 0.4% MoM and 1.0% on a year to September, vs. prior estimates at 0.3% and 0.9%, respectively.

The auspicious data now put the Riksbank in centre stage, as it is well known the desire of the Nordic central bank to see a weaker SEK, which has already appreciated to levels last seen in late June vs. the single currency.

EUR/SEK levels to consider

As of writing the cross is losing 0.56% at 9.2423 facing the next support at 9.2024 (Fibo 23.6% of 9.0558-9.6751) ahead of 9.0558 (ytd low Mar.12) and then 9.000 (psychological level). On the other hand, a surpass of 9.3650 (Fibo 50% of 9.0558-9.6751) would open the door to 9.3524 (200-day sma) and finally 9.5309 (monthly tops Sep.28).

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