Will Riksbank raise 6 interest rates by 75 or 100 bp on Thursday?

Will Riksbank raise 6 interest rates by 75 or 100 bp on Thursday?

Will Riksbank raise 6 interest rates by 75 or 100 bp on Thursday?

Riksbank will meet on Thursday and the decision to raise by 75 or 100 basis points could influence the next direction for the EUR/SEK pair forex.

After raising the six rates by 100 basis points to 1.75% in September, the Riksbank must raise the six rates by at least 75 basis points at its meeting on Thursday. Inflation in Sweden was 10.9% p.a. in October, compared with 10.8% p.a. earlier. Riksbank Governor Ingves recently declared that he would raise interest rates in Sweden higher than his ECB deposit rates to strengthen Sweden’s crown and prevent inflationary imports.

The ECB, which currently sets the deposit rate at 2%, will meet on 15 December and 2 February 2023, followed by another meeting by Riksbank in late February 2023. Interest rates, up 100 basis points during Thursday’s meeting, are not out of the question.

Cependant, le sector du logement peut peser sur l’esprit du Commission Riksbank. The housing market is down about 14% from its recent high to its current high. As a result, the Commission may not wish to raise more than 75 basis points during this meeting.

The EUR/SEK pair has been on the rise in forex since bottoming out at 9.8751 on November 2, 2021. The pair has been moving in the ordering channel since mid-August 2022, recently reaching a short-term peak from 11.0958 on the 21st. October. The EUR/SEK pair returned to the 50% retracement level from its mid-August lows to its peak on October 21st, approaching 10.6826. C’était aussi la ligne de tenance inférieure du canal. La paire a rebound et se négocie actuellement au milieu du channel, heurtant la resistance des plus bas niveaux du 24 octobre à 11.0052.

Graphic EUR/SEK Daily

Source: Tradingview, Stone X

On the 4-hour chart, the course of the pair EUR/SEK forms a flag formation in the aforementioned resistance zone. The price of s’attend à ce que le has exploded. La cible pour unemation de drapeau est la hauteur du mât added a burst point.

The current target for the EUR/SEK pair is around 11.2927. Cependant, si la paire veut attenirer son objectif, elle doit abord passer par les plus hauts du drapeau à 11.0212. line de Tendance rising du channel vers 11.2025.

Note that the March 2020 pandemic peak has risen to 11.4234. Cependant, si le prix ne parvient pas à casser au dessus de la formation du drapeau, le premier support au niveau du drapeau bas à 10.9493. Below, the horizontal supports intersect at 10.9281 and 10.8455.

Chart EUR/SEK 4 hours

EUR/s Forex riksbank Nov 22, 2022
Source: Tradingview, Stone X

Riksbank will meet on Thursday and the decision to raise by 75 or 100 basis points could influence the next direction for the EUR/SEK pair forex. If the risk bank is less aggressive, the pair could be above the flag formation and at the point reaching 11.2927. However, the EUR/SEK pair could retreat if central banks become more aggressive.

Joe Perry, CMT, FOREX.com » Site Official

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