Chart Book
by

Chart of the day: Further weakness in Swedish krona

PUBLISHED : Monday, 26 February, 2018, 8:02am
UPDATED : Monday, 26 February, 2018, 8:02am

Inflation came in at an annualised gain of 1.7 per cent in Sweden last month, falling short of the Riksbank’s 2 per cent target. In Friday’s minutes of its latest rate-setting meeting, the central bank hinted that the current negative 50-basis-point target, in force for two years, could delay its first rise since 2011. This has affected the exchange rate of the krona, taking it to 10.06 to the euro and on track for one of its weakest monthly closes in 25 years, except between the fourth quarter of 2008 and the last three months of 2009. The euro is not overbought while momentum is bullish and call options are a bit more expensive than puts, suggesting a surge to 11 to 11.25 might be imminent.

Nicole Elliott is a technical analyst

business-article-page