USDSEK trades 2.24% higher at 10.0021 after Riksbank announced a substantial extension of the QE programme and unlimited liquidity support. The Riksbank will buy additional SEK 300bn of bonds. The extended programme includes government bonds, local government bonds, as well as covered bonds.
The emergency measures aim for banks to borrow money from the Riksbank at a lower interest rate, also additional liquidity will be supplied to the Swedish financial system, and the functionality of the fixed-income market will improve.
Sweeden central bank kept the repo rate unchanged at 0.0% and said that the Riksbank is reluctant to cut rates below zero. Rate cuts are unlikely also soon, but can’t be ruled out completely. Riksbank increased rates to 0% from negative -0.25 in the previous policy meeting in December.
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USDSEK Price Analysis
USDSEK makes today all-time highs as investors continue to run to US dollar as the greenback liquidity dries up across the globe. The pair staged an impressive rally since the beginning of March, which accelerated after the price breached above the 100-day moving average. The technical outlook is bullish as the pair makes consecutive higher highs and higher lows.
On the upside, intraday resistance will be met at 10.0075 the daily top. A break above might attract more bids for an attempt to the next resistance level at 10.10 psychological mark.
On the flip side, immediate support stands at 9.7166 the daily low. More offers might emerge at 9.6007 the 50-day moving average. The next support zone would be met at 9.5656 the 100-day moving average.
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