EUR/SEK falls to six-week low after Riksbank cuts interest rates

The Swedish krona strengthened further against the EUR and USD.
As expected, the Riksbank cut the interest rate by 25 basis points.
The Riksbank left the door open to further interest rate cuts.

The Swedish Krona (SEK) is gaining momentum and is pulling the EUR/SEK pair towards up-to-date multi-week lows around 11.3600 on Tuesday.

The Riksbank announced that there will be further interest rate cuts

The EUR/SEK pair fell for a third day in a row, breaking through the key 200-day moving average, after the Riksbank cut its base rate by 25 basis points to 3.50% at its meeting on Tuesday, in line with the broad consensus.

The bank also suggested it could accelerate policy easing if price pressures did not escalate. Indeed, the Riksbank noted that if the inflation outlook remained unchanged, the policy rate could be cut two or three more times this year, which would be somewhat faster than the Board’s assessment in June.

Important EUR/SEK levels

EUR/SEK is currently pulling back 0.41% to 11.3803. Loss. The August low of 11.3655 (August 20) could pave the way for a potential test of the July low of 11.3055 (July 3) ahead of the June low of 11.1420 (June 11). On the other hand, initial resistance comes in at the weekly high of 11.5726 (August 15), ahead of the 2024 high of 11.7782 (July 25) and the November 2023 high of 11.8416 (November 2).