EUR/SEK surrender initial gains, back around 9.4600

After climbing to fresh highs above the 9.4800 handle on Friday, EUR/SEK has now faded the earlier spike and returned to the 9.4600 neighbourhood.

EUR/SEK gravitates around 6-month lows

SEK has recovered the ground lost after Swedish inflation figures failed to meet expectations in January, temporarily lifting the cross to fresh tops just above the 9.4800 handle.

In fact, consumer prices have contracted at a monthly 0.7% and gained 1.4% over the last twelve months. Additionally, the CPIF (CPI at constant interest rates) dropped 0.7% inter-month and advanced at an annualized 1.6%, all prints coming in below initial forecasts.

In the meantime, the cross is advancing for the third consecutive session so far, with SEK losing upside momentum since the Riksbank left its monetary stance unchanged at its meeting on Wednesday.

However, and in the longer run, the Krona remains well underpinned by solid fundamentals. That said, the door remains well open for another visit to recent multi-month lows near 9.4000 the figure seen in early February.

EUR/SEK levels to consider

As of writing the cross is losing 0.01% at 9.4555 and a breakout of 9.4814 (high Feb.17) would expose 9.4877 (high Feb.16) and finally 9.5059 (high Feb.9). On the other hand, the next down barrier aligns at 9.4392 (low Feb.16) followed by 9.4300 (low Feb.15) and then 9.3958 (2017 low Feb.1).