- The Swedish Krona plunged to a 2-week trough following the release of the worse-than-exected inflation rate.
- Sweden's consumer price index decreased 1.40 percent in January of 2020 after posting rise of 0.4 percent in December.
- On annualized basis, the inflation rate fell to 1.3 percent in January from 1.8 percent in December, well below market expectations of 1.7 percent, its lowest since March 2017.
- The CPIF came in at t 1.2 percent year-on-year in January, lower than a 1.7 percent rise in the previous month and below market expectations of 1.6 percent.
- EUR/SEK trades 0.3 percent up at 10.5813, having hit a high of 10.5986 earlier, its highest since February 5.
- Technical indicators are bullish: RSI strong at 54 and Stochs are biased higher.
- Immediate resistance is located at 10.6108, any close above could take it near 10.6202.
- On the lower side, support is seen at 10.5378, break below could take it till 10.5270.
Recommendation: Good to buy on dips around 10.5552, with stop loss of 10.5378, and target price at 10.6108.