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Riksbank Keeps Rates Unchanged, USDSEK Drops

Riksbank keeps interest rates unchanged at -0.25% as widely expected by markets, leaving the doors open for a hike to zero per cent in December, and then steady for prolonged time.

USDSEK on the news gives up 0.66 per cent down to 9.5721 making fresh two-month low as traders anticipate arate hike in December that will turn SEK more attractive than USD.

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The pair was in bear path after it broke below the 50-day moving average at 9.7314 last week. Today’s sharp drop after the Riksbank decision pierced the 100-day moving average, giving the bears extra strength. Immediate support for the pair stand at 9.5588 daily low and then at 9.50 the low from August 14th, before a test of the 200-day moving average at 9.4649. On the upside resistance stands at 9.6474 daily high, while more offers will emerge at 9.6962 he high from October 21st. A convincing break above might open the way for a visit up to the 50-day moving average  at 9.7314Download our latest quarterly market outlook for our longer-term trade ideas.

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