Back
28 May 2013
EUR/SEK flat after trade balance figures
FXstreet.com (Barcelona) - The Swedish krona remained almost indifferent to the trade balance figures for the month of April in the Scandinavian economy, climbing to 8.60 although quickly returning to 8.5900/10.
The trade surplus in Sweden widened to SEK 8.8 billion vs. SEK 6.8 billion in the previous month, while producer prices contracted 1.1% on a monthly basis, matching March’s prints. “Speculation about a negative Eurosystem deposit rate and general EUR weakness are bearing down on the pair, whilst Sweden’s enormous macro economic and financial interconnectivity with EMU provides a markedly limited ability for the SEK to appreciate”, assessed Stephen Gallo, Strategist at BMO.
The cross is now losing 0.04% at 8.5897 with the next support at 8.5290 (MA200d) followed by 8.4960 (MA100d) and then 8.4874 (low Apr.22). On the upside, a breakout of 8.6935 (high May 20) would then target 8.6555 (high May 14) en route to 8.7190 (2013 high Jan.21).
The trade surplus in Sweden widened to SEK 8.8 billion vs. SEK 6.8 billion in the previous month, while producer prices contracted 1.1% on a monthly basis, matching March’s prints. “Speculation about a negative Eurosystem deposit rate and general EUR weakness are bearing down on the pair, whilst Sweden’s enormous macro economic and financial interconnectivity with EMU provides a markedly limited ability for the SEK to appreciate”, assessed Stephen Gallo, Strategist at BMO.
The cross is now losing 0.04% at 8.5897 with the next support at 8.5290 (MA200d) followed by 8.4960 (MA100d) and then 8.4874 (low Apr.22). On the upside, a breakout of 8.6935 (high May 20) would then target 8.6555 (high May 14) en route to 8.7190 (2013 high Jan.21).