Forex: EUR/SEK bounces off 8.7000

FXstreet.com (Barcelona) - The Swedish krona has resumed its depreciation against the euro on Thursday, after inflation figures in the Scandinavian economy showed that the CPI has contracted 0.2% on a monthly basis and 0.1% YoY during November, below October's -0.1% and +0.4%, respectively. Adding to the selling pressure on SEK, the jobless rate climbed to 7.5% in the same period, missing forecasts and prior prints at 7.1%.

According to Erica Blomgren, FI Strategist at SEB, these poor data prompts the Riksbank to cut 25 bps the refi rate in its next monetary policy meeting, as the economy is weakening and the inflation remains subdued.

The pair is now up 0.40% at 8.7287 with the next resistance waiting at 8.7520 (high Jul.4) and then 8.7746 (high Jul.2).
On the downside, a break below 8.5950 (low Dec.6) would expose 8.5900 (low Nov.29) and then 8.5600 (low Nov.27).