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EUR/SEK tests support at 9.3200

FXStreet (Edinburgh) - The Swedish krona is gathering pace vs. its European peer on Wednesday, dragging EUR/SEK to challenge daily lows near 9.3200.

EUR/SEK hurt by EUR-weakness

The increasing offered tone around the euro is confining the cross to trade in the lower bound of the range near the key 9.3200 support, although it remains within the broader 9.29-9.39 range that has been prevailing during April.

In another direction, inflation expectations by money market players tracked by TNS Sifo Prospera are seen at 1.3% YoY in two years and 1.9% YoY in five years. Regarding annualized GDP, expectations are at 2.4% for 2017 and 2020.

EUR/SEK levels to watch

As of writing the pair is down 0.09% at 9.3301 and a breach of 9.3050 (low Apr.14) would expose 9.3020 (low Mar.26) and finally 9.2916 (200-d MA). On the flip side, the initial hurdle lines up at 9.3749 (high Apr.13) followed by 9.3803 (100-d MA) and then 9.3970 (high Apr.7).

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