FxWirePro: EUR/SEK slumps to 2-month trough, intraday bias bearish
Thursday, May 7, 2020 12:35 PM UTC
- The Swedish Krona advanced to a 2-month peak as crude oil prices rebounded and the euro continued to decline.
- Crude oil prices steadied as data showed China’s crude imports rebounded against expectations of a sharp drop.
- International benchmark Brent crude was trading 6.3 percent higher at $31.72 per barrel by 1229 GMT, having hit a high of $32.20 on Wednesday, its highest since April 14. U.S. West Texas Intermediate was trading 8.3 percent up at $27.59 a barrel, after rising as high as $27.95 on Wednesday, its highest since April 9.
- Moreover, weakness in the euro further boosted the bid tone around the Swedish currency.
- The euro eased as a German court ruling targeting an ECB bond purchase programme remained in focus.
- On Tuesday, Germany’s highest court gave the European Central Bank three months to justify purchases under its bond-buying programme, or lose the Bundesbank’s participation in one of its main stimulus schemes.
- EUR/SEK trades 0.1 percent down at 10.61882, having hit a low of 10.6016 earlier, its lowest since March 6.
- Immediate resistance is located at 10.6433, any close above could take it near 10.6644.
- On the lower side, support is seen at 10.5888, break below could take it till 10.5713.