EUR/SEK pushes higher above 10.2300 on Riksbank
- The Swedish Krona challenges weekly lows above the 10.23 milestone.
- Riksbank minutes came in on the soft side today.
- Sweden Industrial Production figures next on tap tomorrow.
The selling bias around the Swedish Krona is lifting EUR/SEK to the area of weekly tops beyond 10.2300 the figure.
EUR/SEK stronger post-Riksbank
Following a positive start of the year on the back of a better mood in the shared currency, the cross met strong resistance in levels just shy of the 10.3000 handle (January 3), just to deflate somewhat in subsequent sessions.
Today’s Riksbank minutes are a source of renewed selling pressure around the Swedish Krona, in turn supporting further the daily up move in the cross.
It is worth mentioning that the Riksbank raised its repo rate by 25 bps at its latest meeting to -0.25%. The hike, however, contained a dovish interpretation while Deputy Governor P.Jansson entered a reservation against the rate hike on the back of ‘considerable’ uncertainty surrounding the strength of domestic consumer prices.
The central bank also highlighted the resource utilization as a key driver for keeping inflation around the Riksbank’s 2% target, while at the same time downplayed the apparent slowdown in Q4 2018. The Riksbank now sees the next rate hike at some point in H2 2019.
Still in the Scandinavian Peninsula, the net borrowing requirements of the Swedish central government rose to SEK 78.33 million in December.
EUR/SEK levels to consider
As of writing the cross is gaining 0.28% at 10.2417 and a break above 10.2634 (21-day SMA) would open the door to 10.2971 (2019 high Jan.3) and finally 10.3500 (200-day SMA). On the flip side, the next support lines up at 10.1717 (low Jan.8) seconded by 10.1182 (2019 low Jan.1) and then 10.0956 (monthly low Jun.14).