EUR/SEK drops to 3-week lows near 10.23 on GDP

• The Swedish Krona is sharply higher vs. the single currency.
• The cross drops and clinches fresh multi-week lows.
• Advanced Swedish GDP surprised to the upside in Q2.

The Scandinavian currency is quickly gathering steam vs. its European peer at the beginning of the week, forcing EUR/SEK to fresh multi-day lows in the 10.23 area.

EUR/SEK drops after auspicious data

SEK picked up extra pace after advanced GDP figures showed the Nordic economy is expected to expand at an annualized 3.3% during the April-June period and 1.0% inter-quarter, both prints coming in above initial estimates.

In the meantime, the cross is prolonging the sideline theme between 10.40 and 10.20 seen in the past couple of weeks.

It is worth mentioning that the Riksbank is expected to gradually raise its key rate (today at -0.50%) by year-end amidst high domestic economic activity, inflation on target and robust labour market.

EUR/SEK levels to consider

As of writing the cross is losing 0.58% at 10.2418 and a breach of 10.2312 (low Jul.30) would expose 10.2103 (low Jul.5) and then 10.0956 (low Jun.14). On the other hand, the next hurdle is located at 10.3123 (10-day sma) seconded by 10.4109 (high Jul.20) and finally 10.4755 (low Jul.10).