EUR/SEK moves higher to 10.31, session tops

• The Swedish Krona depreciates to the 10.31 region today.
• Swedish GDP figures disappointed expectations in Q3.
• Politics and Riksbank should drive the mood around SEK near term.

The renewed selling pressure around the Swedish Krona is lifting EUR/SEK to fresh 3-day peaks in the 10.31 region.

EUR/SEK up post-GDP figures

The cross came under pressure today following the disappointing results from the GDP figures for the third quarter.

In fact, the Scandinavian economy contracted 0.2% inter-quarter and expanded at an annualized 1.6% in the July-September period from Q2’s 2.7% expansion. The quarterly contraction is the first one since Q1 2016.

Today’s poor GDP figures add to yesterday’s lower-than-expected results from Retail Sales, all weighing on the Krona and potentially affecting the prospects of a rate hike by the Riksbank at next month’s meeting.

EUR/SEK levels to consider

As of writing the cross is up 0.35% at 10.3082 and a break above 10.3358 (200-day SMA) would expose 10.3496 (low Nov.21) and then 10.3876 (100-day SMA). On the other hand, the next support is located at 10.2474 (low Nov.28) seconded by 10.2080 (monthly low Nov.13) and finally 10.2273 (monthly low Jul.30).