• EUR/SEK picks up upside traction and tests 10.1000.
  • Riksbank looks open to further accommodative measures.
  • Sweden’s jobless rate ticked higher to 9.3% in January.

Further selling pressure around the Swedish krona lifts EUR/SEK to the vicinity of 10.10 on turnaround Tuesday.

EUR/SEK in 2-week highs

EUR/SEK adds to Monday’s gains and advanced to the 10.10 region earlier in the session, although the move run out of steam soon afterwards.

Further weakness in SEK has accelerated on the back of the mild risk-off sentiment in the global markets, which underpins the sentiment around the greenback and depresses the mood in the risk complex.

Also weighing on the Scandinavian currency, the jobless rate in Sweden went up to 9.3% during January (from 8.2%).

Collaborating with the downside, Riksbank’s Deputy Governor Anna Breman said earlier on Tuesday that the central bank still favours sub-zero interest rates and further QE in case the economy needs further stimulus. In addition, Breman did not rule out the implementation of other accommodative tools, such as dual interest rates, yield curve control or even “helicopter money”.

EUR/SEK levels to consider

At the moment, the pair is gaining 0.10% at 10.0703 and a move above 10.0983 (55-day SMA) would target 10.1889 (2021 high Feb.1) en route to 10.2905 (200-day SMA). On the downside, the next support emerges at 10.0070 (2021 low Feb.22) seconded by 10.0000 (psychological level) and finally 9.7462 (2018 low Jan.31).