EUR/SEK sinks to lows post-Riksbank

The Swedish krona is picking up further pace today, now dragging EUR/SEK to fresh daily lows in the 9.3700 area.

EUR/SEK lower on Riksbank minutes

The cross is trading on a weaker note today after the Riksbank has released its minutes for the recent meeting on February 11.

Board members now see downside risks regarding economic developments overseas, while they expect the domestic economy to keep strengthening. Regarding inflation, members now expect prices to weaken during this year mainly due to low energy prices.

The decision to lower the repo rate further into the negative territory was supported by the majority of the board in order to support inflation, while the Executive Board remained unanimous on the readiness of the central bank to intervene in markets and to loose further the monetary policy, even between meetings.

EUR/SEK levels to consider

As of writing the cross is losing 0.25% at 9.3766 and a break below 9.3502 (200-day sma) would expose 9.3225 (61.8% Fibo of 9.1413-9.6163) and finally 9.3160 (55-day sma). On the other hand, the next resistance lines up at 9.4346 (38.2% Fibo of 9.1413-9.6163) followed by 9.6163 (YTD high Feb.11) and then 9.6867 (high 2015 Feb.12).