EUR/SEK plummets to 9.6800 post-Riksbank

• Riskbank left rates unchanged at -0.50%, matching consensus.
• SEK appreciate to daily lows post-decision.
• Riksbank could hike rates in mid-2018.

The Swedish Krona is sharply higher vs. its European peer on Thursday following the Riksbank meeting, with EUR/SEK dropping to fresh lows in the 9.6800 neighbourhood.

EUR/SEK retreats from 9.7200

The cross met a wave of selling pressure after the Riksbank left unchanged the repo rate at -0.50%, matching the broad consensus. SEK regained ground lost to the 9.6800 area soon after the decision, correcting lower from 4-month tops around 9.7200 seen on Wednesday.

The Nordic central bank noted the economic activity stays solid and consumer prices remain close to the 2% target, prompting the monetary conditions to stay accommodative for the time being.

The Riksbank still sees a potential move on rates around mid-2018, while the purchases of sovereign bonds are expected to continue for the rest of the year.

The central bank now sees inflation figures tracked by the CPI rising 1.8% this year, 19% in 2018 and 2.8% in 2019. Regarding GDP, the Riksbank expects the economy to expand 2.9% during the current and next years, and 2.0% in 2019.

EUR/SEK levels to consider

As of writing the cross is losing 0.01% at 9.6972 facing the next down barrier at 9.6794 (low Oct.26) seconded by 9.6309 (10-day sma) and then 9.5893 (200-day sma). On the upside, a surpass of 9.7176 (high Oct.25) would aim for 9.8067 (high Jun.28) and finally 9.8141 (2017 high Jun.8).