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EUR / SEK moves to 2-week highs near 10.1000

  • EUR / SEK regains upward traction and tests 10.1000.
  • The Riksbank appears to be open to further accommodative measures.
  • Sweden’s unemployment rate rose to 9.3% in January.

Increased selling pressure around the Swedish krona raises the EUR / SEK to near 10.10 on Tuesday in a turnaround on Tuesday.

EUR / SEK in 2-week highs

EUR / SEK adds to Monday’s gains and advanced to the 10.10 region early in the session, although the move lost steam soon after.

Further SEK weakness has accelerated due to slight absent risk sentiment in global markets, bolstering sentiment around the dollar and depressing sentiment in the risk space.

Also weighing on the Scandinavian currency, the unemployment rate in Sweden rose to 9.3% during January (from 8.2%).

Helping with the drop, Riksbank Deputy Governor Anna Breman said Tuesday that the central bank still favors subzero interest rates and higher QE in case the economy needs more stimulus. In addition, Breman did not rule out the implementation of other accommodative tools, such as the double interest rate, the control of the yield curve or even the “helicopter money.”

Technical levels

At the moment, the pair is gaining 0.10% at 10.0703 and a move above 10.0983 (55-day SMA) would target 10.1889 (Feb 1, 2021 high) en route to 10.2905 (200-day SMA). On the downside, the next support emerges at 10.0070 (February 22, 2021 low), followed by 10.0000 (psychological level) and finally 9.7462 (January 31, 2018 low).

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