FxWirePro: Swedish Krona weakens on worse than expected service PMI
Friday, April 3, 2020 12:09 PM UTC
- The Swedish Krona declined following the release of worse than expected service PMI.
- Sweden's Services PMI declined to a seasonally adjusted 46.9 in March from a downwardly revised 56.4 in the previous month, pointing to the first contraction in the service sector since last December and the lowest reading since November 2012.
- The bid tone around the Swedish currency further weakened following a warning from the National Institute of Economic Research that Sweden’s economy will contract over 6 percent in the second quarter and 3.2 percent across 2020.
- EUR/SEK trades 0.1 percent up at 10.9530, having hit a low of 10.8509 on Tuesday, its lowest since March 17.
- Immediate resistance is located at 10.9900 (10-DMA), any close above could take it near 11.0250.
- On the lower side, support is seen at 10.8994 (21-EMA), break below could take it till 10.8704.