USDSEK Keeps the Rebound Alive, Sweden CPI Matched Expectations
USDSEK trades 0.22% higher at 9.4810 after the Sweden Consumer Price Index came in at 0.4% in line with forecasts for December. The yearly CPI came in at 1.8% as expected. USDSEK didn’t to react to the CPI as the Swedish economy is on track without any negative implications due to trade tensions.
Riksbank increased interest rates to 0% from negative -0.25 as was expected by markets in December. The central bank of Sweeden noted that the economy had entered a phase with more moderate growth. Interest rates are expected to remain at 0% in the coming years.
USD might be affected by the NY Fed Empire State Manufacturing Index due at 13:30GMT with market consensus at 3.1 below the previous reading of 3.5. Also the Fed Beige Book will be released at 19:00GMT.
USDSEK reeebound since the start of January is intact as the pair managed to move away from 9.30 lows amid the general USD weakness in December. The technical outlook is bearish as the pair trades below all the major daily moving averages. USDSEK rejected twice at the 50-day moving average the previous week, reiterating that bears are in control.
On the upside, intraday resistance will be met at 9.4864 the daily high. A break above that level will attract more bids for an attempt to the next resistance level at 9.51006 the 50-day moving average. Subsequent resistance would be met at 9.5491 the 200-day moving average.
On the downside, immediate support stands at 9.4545 the daily low. More offers might emerge at 9.3862 the low from January 7th. While the next target on the downside for bears is at 9.2961 the low from December 31st 2019.