EUR/SEK tests lows around 9.5300 post-CPI

The Swedish Krona is sharply higher vs. its European peer on Tuesday, now dragging EUR/SEK to the area of daily lows in the 9.5300 neighbourhood.

EUR/SEK weaker on CPI results

SEK gathered traction despite headline consumer prices measured by the CPI rose less than expected 2.1% on a year to August vs. 2.2% initially estimated. On a monthly basis, consumer prices contracted 0.2% vs. an expected 0.1% contraction.

Furthermore, CPI at constant interest rate (CPIF) rose 2.3% on an annualized basis and contracted 0.1% inter-month.

The cross is also suffering the continuation of the selling pressure around the single currency, which continues to retrace the recent spike to fresh cycle highs vs. the greenback and yearly peaks vs. the Sterling.

In addition, the cross is reverting a 5-day positive streak so far today, coming down from yesterday’s fresh 4-week tops just below the 9.6000 handle.

Looking ahead, Swedish GDP figures are due tomorrow, followed by the jobless rate on Thursday.

EUR/SEK levels to consider

As of writing the cross is losing 0.44% at 9.5341 and a breakdown of 9.5129 (21-day sma) would aim for 9.5071 (10-day sma) and then 9.4504 (low Sep.1). On the other hand, the next up barrier emerges at 9.5951 (high Sep.11) seconded by 9.5967 (200-day sma) and finally 9.6322 (50% Fibo of the June-September drop).