FxWirePro: Swedish Krona off 2-1/2 month trough on upbeat economic data
Tuesday, September 29, 2020 11:44 AM UTC
- The Swedish Krona rose, drifting away from a 2-1/2 month low recorded last week following the release of upbeat economic data.
- Sweden's total industry confidence indicator increased by 7.3 points from the previous month to a 7-month high of 93.6 in September 2020. Separate data showed consumer confidence indicator increased by 3.2 points from the previous month to 88.3 in September 2020.
- Sentiment improved among manufacturers, service providers and retailers, while morale among constructors deteriorated.
- Meanwhile, inflation expectations in Sweden increased to 3.10 percent in September from 2.80 percent in August.
- The bid tone around the Swedish currency strengthened further as the greenback eased across the board.
- The dollar index eased to a near 1-week low amid political developments in the United States and worries that the economic recovery is stalling as many stimulus programs have expired, curbing consumer spending.
- USD/SEK trades 0.3 percent lower at 9.0107, having hit a high of 9.1649 on Friday, its highest since July 14.
- Immediate resistance is located at 9.0660, any close above could take it near 9.0840.
- On the lower side, support is seen at 8.9859 (7-EMA), break below could take it till 8.9571.