Swedish crown could target key levels next year
Dec 12 (Reuters) -A favourable and improving domestic backdrop could allow the crown to extend its choppy bull trend versus the euro in early 2025.
The stage is set for EUR/SEK to target key chart levels. The monthly Kijun line, supporting since May 2022, currently 11.3385, and September's 11.2450 low are stand-out levels. The weekly Ichimoku cloud parameters also provide potential objectives, presently at 11.4975 and 11.4213.
Major EUR/SEK daily chart support levels are also in the mix at the cloud base of 11.4878 and 200-day moving average of 11.4748.
Swedish inflation is under control and the CPIF measure is at levels just below the Riksbank's 2.0% target. There could be a period of inflation undershooting the bank's target and with the crown set to recover more ground versus the euro the outlook favours growth-boosting interest rate cuts.
The SEK's recent performance is even more impressive given the seasonal out-flows that have likely dragged on the currency. The Swedish annual premium pension payment flows take place in early December and the estimated SEK 8 billion-9 billion flows can work against the SEK as the Pension Authority deposits the year's money into funds chosen by Swedish savers.
For more click on FXBUZ
EUR/SEK monthly candle chart: https://tmsnrt.rs/3DbDFMi
EUR/SEK weekly Ichimoku chart: https://tmsnrt.rs/3OTovh6
EUR/SEK daily Ichimoku chart: https://tmsnrt.rs/41sfNOn
(Peter Stoneham is a Reuters market analyst. The views expressed are his own)
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