EURSEK has pierced the 50-day EMA at 11.5087, with today’s pullback now reaching 0.6%. The drift higher in European equities alongside broader dollar weakness following the weak ISM services data has supported the risk-sensitive krona today.
- EURSEK has fallen almost 2% from the Nov 5 high, with the single currency seeing more pronounced weakness following the US election result.
- Clearance of the 50-day EMA would expose the 50% retracement of the September to November bull leg at 11.4780.
- This morning, the Swedish November services PMI fell 2.2 points to 50.9 (consensus of 53.2 was formed of just three analysts). This is quite a volatile series, and we continue to place more weight on the Economic Tendency Indicator (where services sentiment was 97.1 in November vs 94.4 prior).
- Meanwhile, long-term inflation expectations from Prospera remained well-anchored around the 2% target.
- Tomorrow’s calendar is headlined by flash November CPI. See here for a mini-preview: https://marketnews.com/sweden-inflation-to-accelerate-in-nov-shouldnt-deter-riksbank-cuts-yet
