EUR/SEK holds ground below the 11.90 mark ahead of German CPI data



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  • EUR/SEK recovers some lost ground around 11.82, up 0.03% on the day.
  • The German Gfk Consumer Confidence Survey came in at -25.5 versus -24.6 prior.
  • The less hawkish stance of the Riksbank compared to the ECB might limit the upside of the Swedish Krona.
  • Investors will monitor the German CPI, Eurozone Retail Sales, ECB Meeting Minutes due later this week.

The EUR/SEK cross posts a modest gain around 11.82 after bouncing off the weekly low of 11.79 during the Asian trading hours on Wednesday. Market participants await August’s preliminary German Consumer Price Index for fresh impetus. The annual and monthly CPI figures are expected to rise 6% and 0.3%, respectively.

The German Gfk Consumer Confidence Survey for September reported on Tuesday came in at -25.5 versus -24.6 prior and worse than the expectation of -24.3. Earlier, the Eurozone money supply fell for the first time since 2010 as private sector lending slowed and deposits fell. The softer economic data might convince the European Central Bank (ECB) to pause interest rates at its next meeting on September 14.

Nevertheless, policymakers were divided between a pause and additional tightening. The release of Eurozone inflation data and the ECB’s new economic projections this week could offer hints about future monetary policy.

On the other hand, the Riksbank’s policymakers voted unanimously to increase the policy rate by 25 basis points (bps) to 3.75% on June 29. The Swedish central bank suggested that they might raise interest rates at least once more this year. However, the Riksbank is not acting forcefully enough against inflation in comparison to the ECB. This, in turn, might limit the upside of the Swedish Krona and act as a tailwind for EUR/SEK.

Market players will keep an eye on the preliminary German and Eurozone Consumer Price Index (CPI) for August, Eurozone Retail Sales, and the ECB Meeting Minutes. Traders will take cues and find trading opportunities around the EUR/SEK cross. 

 


منبع: https://www.fxstreet.com/news/eur-sek-holds-ground-below-the-1190-mark-ahead-of-german-cpi-data-202308300355