EUR/SEK leaps to fresh tops near 9.5900

The Swedish Krona is rapidly losing ground vs. the single currency on Thursday, lifting EUR/SEK to fresh tops in the 9.5900 neighbourhood.

EUR/SEK higher post-CPI

SEK met a wave of selling orders after inflation figures in Sweden disappointed markets for the month of September.

In fact, consumer prices tracked by the CPI rose at an annualized 2.1% (vs. 2.4% initially forecasted) and 0.1% inter-month (vs. 0.4% previously estimated). Further data saw the CPIF (CPI at constant interest rates) rising 2.3% on a yearly basis and 0.2% MoM.

CPI rose mainly due to a rise in prices for clothing seconded by increases in electricity, gas, other fuels, restaurants and hotels. The rise was eclipsed by drop in prices of food, transport services, recreation and culture.

The cross has quickly leapt to fresh weekly peaks in the vicinity of the 9.5900 handle soon after the releases, at the same time breaking above the consolidative theme prevailing since the start of the month.

EUR/SEK levels to consider

As of writing the cross is up 0.43% at 9.5872 facing the next up barrier at 9.5896 (high Oct.12) followed by 9.6053 (100-day sma) and finally 9.6179 (23.6% Fibo of the September up move). On the other hand, a breach of 9.5551 (10-day sma) would expose 9.5462 (21-day sma) and then 9.5131 (low Oct.4).