FxWirePro: USD/SEK advances to 2-month peak, outlook remains bullish
Wednesday, September 23, 2020 11:56 AM UTC
- The Swedish Krona plunged to a 2-month low after the Swedish central bank kept its interest rate unchange yesterday.
- Riksbank kept its main interest rate at zero and said it expects it to remain at this level in the coming years due to the economic uncertainty created by the coronavirus pandemic.
- Moreover, a rally in the greenback further dented the bid tone around the Swedish currency.
- USD/SEK trades 0.2 percent higher at 8.9251, having hit a high of 8.9501 earlier in the session, its highest since July 21.
- On Tuesday, the pair broke above 55-EMA to close nearly 0.8 percent higher at 8.9100.
- Immediate resistance is located at 8.9845, any close above could take it near 9.000.
- On the lower side, support is seen at 8.8676 (55-EMA), break below could take it till 8.8420.