EUR/SEK moves to fresh 2016 tops above 9.7300

The Swedish Krona is sharply lower vs. its European peer on Tuesday, pushing EUR/SEK to print fresh 2016 highs just beyond the 9.7300 handle.

EUR/SEK higher post-CPI

The cross is extending its impressive rally to levels just above the 9.7300 handle today, advancing for the fifth straight week and trading in levels last seen in October 2010.

SEK has picked up extra downside pace after inflation figures in the Nordic economy have come in short of expectations during September. In fact, consumer prices rose at a monthly 0.2% (vs. 0.5% exp.) and 0.9% over the last twelve months (vs. 1.2% exp.). Further data saw the CPIF (CPI at constant interest rates) rising 0.2% MoM and 1.2% YoY. Also below estimates.

Adding to SEK selling pressure, the Unemployment rate hast ticked higher to 7.5% during last month vs. 7.4% previous.

Still in Sweden, Riksbank’s Ohlsson argued (hoped?) that stronger growth should morph into higher prices and salaries. He still sees consumer prices on their way to the 2% target as the rising trend in inflation figures remains intact. Ohlsson ruled out the central bank could be targeting the exchange rate level.

EUR/SEK levels to consider

As of writing the cross is advancing 0.81% at 9.7166 facing the next resistance at 9.7306 (2016 high Oct.11) followed by 9.9757 (monthly high May 2010) and finally 10.5374 (monthly high November 2009). On the other hand, a breakdown of 9.6083 (20-day sma) would open the door to 9.5677 (low Oct.3) and finally 9.5467 (55-day sma).