EUR/SEK retreats from 2016 tops, back below 9.76

The Swedish Krona is strengthening modestly on Thursday, now dragging EUR/SEK to the area of daily lows in sub-9.7600 levels.

EUR/SEK lower after Ingves comments

SEK gathered extra steam today after Riksbank Governor S.Ingves said he would prefer the Krona to appreciate gradually, while noted at the same time that inflation expectations remain on the rise and that the central bank remains ready to act if needed (that is, easing further).

Ingves comment poured cold water over initial concerns following lower than expected consumer prices during September published on Tuesday, although the TNS Prospera Survey on Wednesday showed inflation expectations appear well anchored in the next couple of years.

It is worth mentioning that the next interest rate decision by the Riksbank will be on October 26, and it is expected to keep the key rate unchanged at -0.50%.

EUR/SEK levels to consider

As of writing the cross is losing 0.03% at 9.7373 and a break above 9.7612 (2016 high Oct.12) would open the door to 9.9757 (monthly high May 2010) and finally 10.5374 (monthly high November 2009). On the other hand, the next support lines up at 9.6293 (20-day sma) followed by 9.5538 (55-day sma) and then 9.4693 (low Sep.8).