EUR/SEK stays close to recent lows near 9.4800

The Swedish Krona is posting marginal losses vs. its European peer on Wednesday, with EUR/SEK navigating the area of recent lows in the 9.4800 neighbourhood.

EUR/SEK weaker on CPI

SEK stays within range after the monthly survey by TNS Sifo Prospera on inflation expectations. The survey for the month of August showed money market players now see consumer prices rising 1.8% in year 1, 2.0% in year 2 and 2.1% in year 5, vs. July’s 1.7%, 1.9% and 2.0%, respectively.

Regarding GDP, the recent survey shows the economy is expected to expand 2.8% in Year 1 (vs. 2.7%), 2.5% in Year 2 (vs. 2.3%) and 2.2% (unch.) in Year 5.

Furthermore, money market players now see the repo rate at -0.5% within the next 3 months, -0.2% in a 12-m horizon, 0.4% in 24 months and 1.8% in the longer run (60 months).

In the meantime, the cross remains close to yesterday’s fresh 5-month lows around the 9.4600 handle, recorded after inflation figures in the Nordic economy rose more than expected in July.

EUR/SEK levels to consider

As of writing the cross is up 0.10% at 9.4846 facing the next up barrier at 9.5534 (23.6% Fibo of the 2017 up move) seconded by 9.5735 (10-day sma) and finally 9.6243 (200-day sma). On the flip side, a breakdown of 9.4746 (low Aug.15) would aim for 9.4503 (low Mar.17) and then 9.4300 (low Feb.15).