FxWirePro: USD/SEK at 1-1/2 week peak, likely to sustain gains above 55-EMA
Wednesday, October 28, 2020 12:59 PM UTC
- The Swedish Krona slumped to a 1-1/2 week low despite upbeat economic data.
- The consumer confidence indicator in Sweden rose 1.6 points from the previous month to 90 in October, recovering further from a 12 year low of 73.9 reported in April. Meanwhile, the total industry confidence indicator increased by 1.9 points from the previous month to an 8-month high of 95.7 in October.
- Separate data showed retail sales in Sweden rose 3.9 percent year-on-year in September, accelerating from a 3 percent increase in the previous month. On a seasonally adjusted monthly basis, retail trade went up 0.8 percent, after falling 0.2 percent in August.
- Strength in the greenback dented the bid tone around the Swedish currency.
- USD/SEK trades 1.5 percent higher at 8.8490, having hit a high of 8.8589 earlier, its highest since October 19.
- Immediate resistance is located at 8.8830, any close above could take it above 8.8950.
- On the lower side, support is seen at 8.7082, break below could take it till 8.6902.