EUR/SEK settles above 2-week low, posts weekly loss

The EUR/SEK currency pair settled above recent low of 11.1271, its weakest level since July 11th, in the wake of the European Central Bank’s policy decision.

The ECB left its main refinancing operations rate intact at 2.15%, while the deposit facility rate was kept at 2.0%.

Borrowing costs have been brought to their lowest levels since November 2022 after eight consecutive rate cuts.

ECB policy makers have adopted a wait-and-see approach, as they evaluate the impact of lingering trade uncertainty and the potential fallout from US tariffs on GDP growth and inflation.

In June, Euro Area’s inflation aligned with the ECB’s 2% target.

In Sweden, the rate of unemployment was reported at 9.4% in June, down from 9.7% in May.

The number of unemployed persons went down by 7,000 from a year ago to 559,000.

The exotic Forex pair lost 0.60% for the week.