EUR/SEK retreats from 2018 tops post-Riksbank

• The Swedish Krona recorded a fresh yearly low post-Riksbank.
• The cross moved beyond 10.48 after Riksbank left rate unchanged.
• Riksbank sees a rate hike by year end, later that prior surveys.

The Swedish Krona remains on the defensive today, pushing EUR/SEK to clinch fresh 2018 tops above the 10.48 area in the wake of the Riksbank decision.

EUR/SEK higher on Riksbank

The cross quickly jumped to fresh highs above the 10.48 area – levels last seen in December 2009 - after the Riksbank left the repo rate unchanged at -0.50% at today’s meeting, matching the broad consensus.

The Scandinavian central bank stressed the domestic economic activity remains strong although inflation has been struggling to pick up pace in a sustainable fashion.

In subsequent comments, Governor S.Ingves said inflation still needs to be supported by monetary policy.

Riksbank’s board member Ohlsson advocated for a rate hike to -0.25% based on the solid health of the Swedish economy and overseas. The Riksbank now sees a potential rate hike at some point by year-end, later than initially projected.

EUR/SEK levels to consider

As of writing the cross is gaining 0.41% at 10.4588 facing the next hurdle at 10.4842 (2018 high Apr.26) seconded by 10.5287 (monthly high Dec.2009) and finally 10.5470 (monthly high Nov.2009). On the other hand, a breach of 10.4099 (10-day sma) would expose 10.3535 (21-day sma) and then 10.2503 (low Apr.10).