SEK reaction to Riksbank talk - Anyone else watching the 9.49 level?
Watching $USDSEK today, feels like we're finally seeing some genuine follow-through on the Riksbank's slightly less dovish rhetoric. After flirting with that 9.60 area earlier in the week, it's nice to see it drop below 9.50 and hold around 9.49516. It's not a complete reversal of fortunes for the krona, but the setup around 9.49214 on the low side for the day is interesting.
My take is that if we get a sustained break lower, some of those short-covering rallies in other crosses might start to unwind. Not convinced it's a long-term trend change just yet given the broader macro, but definitely on my radar for any further downside momentum. Let's see if the bulls can defend that 9.49 area.