EUR/SEK stays near lows around 9.7200
- SEK gathered traction on inflation survey.
- Survey sees inflation expectations broadly anchored.
- Riksbank’s executive board met today.
The Swedish Krona is clinging to its daily gains vs. its European peer on Tuesday, dragging EUR/SEK to the fresh lows in the 9.7200 neighbourhood.
EUR/SEK retreats from YTD highs
SEK is gathering traction for the third consecutive session on Tuesday, coming down after being rejected from 2017 tops in the boundaries of 9.8300 the figure on Friday.
Recent comments by Riksbank’s C.Skingsley gave extra support to the Krona after shed noted the Nordic central bank should decouple from the ECB’s guidance, as the domestic economy continues to show strong fundamentals.
In addition, today’s TNS Prospera survey showed inflation expectations remain firmly anchored. In fact, the survey showed the CPI is expected at 2.0% in year 1, 2.1% in year 2 and 2.0 in year 5. Inflation figures at constant interest rates (CPIF) are also seen at 2.0%, 2.1% and 2.0%, respectively.
Regarding GDP, the survey now expects the economy to expand 2.7% in year 1, 2.4% in year 2 and 2.2% in year 5. Further out, the repo rate is seen at 1.6% within the next 5 years.
EUR/SEK levels to consider
As of writing the cross is losing 0.06% at 9.7222 facing the next down barrier at 9.7176 (low Oct.8) seconded by 9.6772 (21-day sma) and then 9.6020 (200-day sma). On the upside, a surpass of 9.7452 (10-day sma) would aim for 9.8019 (high Nov.6) and finally 9.8288 (2017 high Nov.3).