USDSEK trading 0.19 higher at 9.7361 ahead of the Sweden, yearly and monthly, inflation data; Analysts expect a neutral increase to 1.5% in the CPI that will not affect Riksbank’s plan to raise interest rates in the December policy meeting.
Riksbank left its interest rate unchanged at -0.25% on October 24th policy meeting, as expected by markets. The Central bank also said it plans to tighten policy at its December meeting. Committee members also pointed out that the Swedish economy is slowing down while inflation has fallen, in line with the Riksbank’s forecasts.
On the data front, the United States NFIB Business Optimism Index yesterday came in at 102.4, below forecasts of 103.5 for October. Traders await later today the inflation numbers from UK and US. US Fed Chairman Jerome Powell is scheduled to testify on economic outlook infront of the Joint Economic Committee.
USDSEK trades close to daily highs and above the crucial 50-day moving average which pierced yesterday. On the technical side the momentum is bullish now as the pair trades above all major daily moving averages. The rebound from monthly lows at 9.54 continues amid USD strength across the board.
On the upside, immediate resistance stands at 9.7461 today’s high, a break above can lead prices up to 9.82 the high from October 17th, before an attempt to yearly highs at 9.96.
Now on the downside, immediate support stands at 9.7071 daily lows, a break below that level might attract more sellers to join the action that may drive the price down to 9.6251 the 100-day moving average, while a convincing close below that level will open the way for a visit down to 200-day moving average at 9.5064.More content