EUR/SEK in 15-month tops beyond 10.00

• The Swedish Krona depreciates beyond the 10.00 handle vs. EUR.
• Cross trades in levels last seen in November 2016 near 10.06.
• Dovish Riksbank minutes hurt sentiment around the Krona.

The Swedish Krona is sharply lower vs. its European peer at the end of the week and is helping EUR/SEK to advance to fresh 2018 tops beyond the psychological 10.00 handle.

EUR/SEK weaker on Riksbank minutes

The cross is trading in levels last seen in November 2016 beyond the critical 10.00 mark following the dovish tone from the Riksbank minutes of the February 13 meeting, published earlier in the session.

In the minutes, the Scandinavian central bank noted the majority of the Executive Board sees solid domestic growth, strong labour market and inflation on its way to the 2% target. However, members remain concerned as inflation pressures have subsided as of late while inflation expectations appear in line with the goal.

Minutes also showed that one member voted to raise the repo rate to -0.25%.

Later, Deputy Governor P.Jansson said the picture for inflation and inflation expectations remains ‘fairly bright’, adding that there is a very low probability of a rate hike.

In the meantime, the cross is up for the second session and prolonging the strong rally from YTD lows in the 9.73 area recorded late January. Next interim target emerges in the 10.09 region, 2016 tops.

EUR/SEK levels to consider

As of writing the cross is up 0.33% at 10.0389 facing the next up barrier at 10.0635 (2018 high Feb.23) seconded by 10.0907 (2016 high Nov.9) and finally 10.2606 (monthly high Feb.2010). On the other hand, a breach of 9.9452 (10-day sma) would expose 9.8914 (21-day sma) and then 9.8758 (low Feb.19).