EUR/SEK off highs, back below 9.7700

The Swedish Krona remains on the defensive vs. its European peer on Tuesday, with EUR/SEK coming back to the mid-9.7600s after clinching tops at 9.7760.

EUR/SEK lower after data

The cross edged higher after the Swedish GDP showed the economy has expanded at an annualized 2.8% during the third quarter vs. 3.0% expected and coming down from Q2’s 3.6% expansion. Inter-quarter, the economy has expanded 0.5%, matching initial estimates.

Today’s results, albeit lower than expected, confirm the solid health of the Nordic economy and add to yesterday’s auspicious readings from Retail Sales, all against the backdrop of a divided consensus regarding the likeliness of extra easing by the Riksbank at its meeting next month.

The cross is retreating for the fourth week in a row so far, coming down after being rejected from the area of multi-year tops near 10.10 (November 9), levels last seen in February 2010.

EUR/SEK levels to consider

As of writing the cross is gaining 0.06% at 9.7678 and a break above 9.8460 (20-day sma) would expose 9.8906 (low Nov.17) and finally 10.0096 (high Nov.7). On the other hand, the next support lines up at 9.7347 (low Nov.24) ahead of 9.6755 (low Oct.27) and then 9.6318 (100-day sma).