The EUR/SEK currency pair settled above Friday’s low of 10.8870, its weakest level since April 25th,

as investors digested stronger-than-expected CPI inflation data out of the Euro Area and robust Swedish manufacturing numbers.

Preliminary data by Eurostat showed that annual consumer price inflation in the Euro Area had remained stable at 2.2% in April, outpacing market consensus of 2.1%. The rate was just above the European Central Bank’s 2% target.

Yet, inflation in services picked up to 3.9% in April from 3.5% in March.

And, the bloc’s annual core inflation rate, which excludes volatile categories such as food and energy, accelerated to 2.7% in April from a three-year low of 2.4% in March. The core rate also exceeded market expectations of 2.5%.

At the same time, the unemployment rate within the bloc has remained at a record low of 6.2% for the sixth straight month in March.

Markets are still pricing in 60 basis points of additional rate cuts by the European Central Bank by the end of the year following the data.

Meanwhile, in Sweden, factory activity continued to expand in April. The Swedbank Manufacturing Purchasing Managers’ Index came in at a reading of 54.2 in April, up from 53.6 in March.

It has been the strongest PMI level since May 2022, mostly driven by continued expansion in new orders and improved delivery times.

The EUR/SEK currency pair settled 0.75% lower at 10.9046 on Friday.

The exotic Forex pair lost 0.82% for the week.