EUR/SEK breaks out

The Swedish krona continues to hit new lows against her major rival, the euro.

The Swedish krona continues to hit new lows against her major rival, the euro.

The EUR/SEK broke to a new 2019 high earlier after clearing major resistance in the 10.85 zone. The krona’s ongoing weakness is a reflection of the market’s disagreement with Swedish central bank – the Riksbank – which had projected higher interest rates, despite all other major central banks turning dovish.

Thanks to soft domestic data and a slowing global economy, investors are increasingly doubting the central bank it will go ahead with projected rate hikes. Indeed, some have suggested that the Riksbank may even do a U-turn on interest rates and loosen – rather than tighten – monetary policy at the end of the year. With growth weakening in the Eurozone and China, and as exports account for almost half of the nation’s GDP, this may not be a bad shout after all.

Today’s breakout above the 10.8500 level means the technical path of least resistance continues to be to the upside for the EUR/SEK. Once resistance, this level could be the new key support to watch going forward. Generally, for as long as rates remain above the 10.8245-10.8500 area, the bulls should remain in control – so a bit of deviation from the noted 10.8500 level should be okay. However, if price breaks below the aforementioned range, then in that case a return to the next key support at 10.7290 cannot be ruled out.

Source: eSignal and City Index

Related Articles


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.