Today’s rally weakens the technical picture for EUR/SEK - Rabobank

FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank highlights that firmer than expected release of Swedish October CPI inflation data made the SEK rally vs. the EUR this morning, pushing through a 100 day sma, but warns of a further downside pressure near-term.

Key Quotes

“The better tone of the SEK today has resulted in EUR/SEK pushing through the 100 day sma at EUR/SEK9.1981.“

“This has weakened the technical picture for EUR/SEK which would imply an increased the risk of further downside pressure near-term.“

“That said, we would expect the very dovish tone of the Riksbank to offset SEK buying and look for a move back towards EUR/SEK9.30 in the coming months.”