FxWirePro: USD/SEK hovers towards 1-week peak, intraday bias bullish
Wednesday, July 1, 2020 11:51 AM UTC
- The Swedish Krona slumped, hovering towards a 1-week low hit in the prior session following Riksbank's policy decision.
- Sweden's central bank left its key repo rate unchanged at 0 percent as expected and substantially boosted the size of its asset purchases, including corporate bonds for the first time.
- The central bank expects the economy to shrink 4.5 percent this year, though the government sees a 6 percent contraction.
- Data released earlier showed Sweden's Swedbank Manufacturing PMI rose to 47.3 in June, compared to a forecast of 48.4.
- USD/SEK trades 0.6 percent up at 9.3711, having hit a high of 9.3878 the day before, its highest since June 23.
- Immediate resistance is located at 9.3972, any close above could take it near 9.4252.
- On the lower side, support is seen at 9.2737, break below could take it till 9.2527.