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USD/SEK falls sharply after Swedish CPI and USD weakness

  • The USD/SEK pair fell to a low of 10,825.
  • The Swedish CPI for October will be reported on Tuesday and is expected to rise to 6.7% year-on-year.
  • US CPI for October will also be released on Tuesday.

USD/SEK fell sharply on Monday to a daily low of 10.825 and then consolidated around 10.830, showing an intraday decline of 0.40%, driven by the weakening USD, before the Indices readings were reported. of October Consumer Prices (CPI) of both countries.

On Tuesday, Sweden’s SCB Statistics is expected to report that the October Consumer Price Index (CPI) rose to 6.7% from 6.5% previously. In this sense, if the reading is higher than expected, the pair could continue to fall, due to the Riksbank’s hawkish bets, which left the door open to a new tightening.

Elsewhere, markets await the US CPI on Tuesday and the Producer Price Index (PPI) and retail sales figures on Wednesday, which will provide the Federal Reserve (Fed) with further evidence on the outlook for US inflation. Last week, bank officials and Chairman Powell sounded cautious, stating that the “job was not done,” noting that they will need more evidence to confirm that inflation is coming down. Heading into the next meeting in December, markets appear confident that the Fed will not raise rates, and the path of the USD will likely depend on how long investors will price rates at restrictive levels based on the data outcome. starters.

USD/SEK levels to watch

Based on the daily chart, the USD/SEK remains in a bearish trend, with indicators reflecting that the bears are strengthening. The Relative Strength Index (RSI) reveals a downward slope below its midpoint, while the Moving Average Convergence Histogram (MACD) displays larger red bars. On a broader scale, the pair is also below the 20-day and 100-day SMA, but above the 200-day SMA, suggesting that the bulls continue to show strength in the overall trend, but they look weak on shorter time frames.

Supports: 10,830, 10,770, 10,760
Resistances: 10,862 (100-day SMA), 10,900, 10,980.

USD/SEK daily chart


Latest price today 10,838
Daily change today -0.0701
Today’s daily variation -0.64
Today’s daily opening 10.9081
daily SMA20 11,032
daily SMA50 11.0464
SMA100 daily 10.8708
SMA200 daily 10.6864
Previous daily high 10,945
Previous daily low 10.8781
Previous weekly high 10.9808
Previous weekly low 10.8282
Previous Monthly High 11.2275
Previous monthly low 10.8482
Daily Fibonacci 38.2 10.9037
Fibonacci 61.8% daily 10.9195
Daily Pivot Point S1 10.8758
Daily Pivot Point S2 10.8435
Daily Pivot Point S3 10.8089
Daily Pivot Point R1 10.9427
Daily Pivot Point R2 10.9773
Daily Pivot Point R3 11.0095

Source: Fx Street

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