Summary:

• Swedish krona (SEK) rallying strongly after Jochnick comments
• Jochnick, the Riksbank deputy governor, said growth and inflation stronger than anticipated
• USDSEK testing key support at 8.000

There’s been a sharp move higher in the Swedish Krona today following comments out of the country’s central bank. Kerstin af Jochnick, first deputy governor of the Riksbank, has been speaking in Stockholm with comments that have been warmly received by SEK.

The following quotes are were the most noteworthy:

• Riksbank will make decision on target variable and variation bank at its monetary policy meeting on September 6th (announcement on September 7th)
• During the summer, growth and inflation in Sweden have been stronger than anticipated
• At the same time, the Krona has also been strong and the Riksbank is currently working on what this means for monetary policy, prior to the upcoming decision

The USDSEK bares an uncanny resemblance to the USDIDX on a weekly chart with the pair falling in recent months to a major support level. The 8.00 level has previously attracted buyers and acted as a base since late 2014. 

 USDSEK has fallen close to a 3 year low today. The 8.00 handle could be seen as an important swing level going forward. Source: xStation