EUR/SEK keeps the consolidation well around 10.1500

• EUR/SEK sticks to the rangebound theme in the 10.1500 area.
• The Riksbank holds rate unchanged at 0.00% at its meeting.
• Sweden Unemployment Rate ticked higher to 8.5%.

The Swedish krona alternates gains with losses vs. its European counterpart and prompts further consolidation in EUR/SEK, always around the 10.1600 zone.

EUR/SEK ignores the Riksbank’s decision

EUR/SEK now adds to the pessimism recorded at the beginning of the week and posts small losses following discouraging data and the steady hand from the Riksbank.

Indeed, the jobless rate in the Scandinavian economy unexpectedly ticked higher to 8.5% in August (from 8.0%), while the Riksbank left its policy rate unchanged at 0.00% at its meeting on Tuesday.

The “dovish hold” by the Nordic central bank sees no changes to its key rates at least until 2024, while the bank regards the current environment of high inflation as temporary and largely driven by energy, food and supply shortages, falling in line with the broad-based view from its G10 peers.

EUR/SEK levels to consider

So far, spot is losing 0.07% at 10.1670 and a breakout of 10.1983 (55-day SMA) would expose 10.2338 (monthly high Sep.20) and then 10.2696 (monthly high Jul.19). On the other hand, the next support emerges at 10.1432 (200-day SMA) followed by 10.1248 (monthly low Sep.6) and finally 10.0874 (monthly low Jul.5).