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14 Jan 2015
EUR/SEK drops to fresh lows near 9.4600
FXStreet (Edinburgh) - The abrupt increase of the selling pressure around the euro prompted EUR/SEK to fall to test fresh intraday lows in the 9.4600 region.
EUR/SEK weaker on euro
The single currency accelerated its decline to print fresh multi-year lows vs. the US dollar, encouraging the sell-off vs. other currencies. However, the extent of the fall has not reached yesterday’s levels, when better-than-expected inflation figures in the Swedish economy gave extra strength to the krona. In light of the mounting rumours regarding the likeliness of the ECB adopting some form of QE, Senior Analyst Signe Roed-Frederiksen at Danske Bank commented “Provided the ECB delivers on QE we think the Riksbank will eventually be forced to consider alternative easing options to bring inflation back to target; this should weigh on the SEK later in H1”.
EUR/SEK levels to watch
As of writing the cross is losing 0.37% at 9.4595 with the immediate support at 9.3995 (daily trend supp) ahead of 9.3810 (low Jan.8) and finally 9.3617 (low Dec.31). On the upside, a breakout of 9.5751 (high Jan.13) would aim for 9.5849 (high Jan.12) and then 9.6249 (high Dec.29).
EUR/SEK weaker on euro
The single currency accelerated its decline to print fresh multi-year lows vs. the US dollar, encouraging the sell-off vs. other currencies. However, the extent of the fall has not reached yesterday’s levels, when better-than-expected inflation figures in the Swedish economy gave extra strength to the krona. In light of the mounting rumours regarding the likeliness of the ECB adopting some form of QE, Senior Analyst Signe Roed-Frederiksen at Danske Bank commented “Provided the ECB delivers on QE we think the Riksbank will eventually be forced to consider alternative easing options to bring inflation back to target; this should weigh on the SEK later in H1”.
EUR/SEK levels to watch
As of writing the cross is losing 0.37% at 9.4595 with the immediate support at 9.3995 (daily trend supp) ahead of 9.3810 (low Jan.8) and finally 9.3617 (low Dec.31). On the upside, a breakout of 9.5751 (high Jan.13) would aim for 9.5849 (high Jan.12) and then 9.6249 (high Dec.29).