The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate is currently trending in the region of 11.5575 after hitting a low of 11.5442.
The GBP/SEK pairing shed more than 0.7% over the course of the European session in response to several influential European economic reports.
Earlier this week the appeal of the Swedish Krona was significantly compromised as Sweden published disappointing second quarter growth data.
However, today’s upbeat domestic report has helped the Krona stage a comeback.
The Euro to Swedish Krona (EUR/SEK) exchange rate pared previous gains and slid from 9.2408 to 9.2060 over the course of trading.
The US Dollar to Swedish Krona (USD/SEK) also softened modestly to 6.8733, although the ‘Greenback’ may recover gains if today’s US Non-Farm Payrolls report shows a strong increase in employment.
The Swedbank Manufacturing PMI rose from 54.8 in June to 55.2 in July.
The gauge has now been in expansion territory for 15 months. Economists had been anticipating a slightly softer reading of 54.9.
A sharp spike in production was largely responsible for the better-than-anticipated result, with the production index advancing from June’s 55.9 to 59.6 in July.
According to the report, new orders continued to rise, although the ‘sub index on employment fell by 1.8 index points.’
Gains in the Pound Sterling to Swedish Krona exchange rate were also aided by the fact that the UK’s own Manufacturing PMI fell short of forecasts.
The index slid from a revised figure of 57.2 to 55.4 last month, marking the slowest pace of expansion in the UK’s manufacturing sector for a year.
The Pound slipped against the majority of its currency counterparts during the European session.
GBP to SEK Forecast
There are two potentially influential economic reports for Sweden to be aware of next week; the nation’s Services PMI and Industrial Production data.
The services gauge came in at 54.6 in June, well above the 50 mark separating growth from contraction, so economists will be hoping for another strong result in July.
As Industrial Production in the region was shown to have contracted by -3.2% in June on a month-on-month basis, a rebound would be Krona-supportive.
Meanwhile, if next week’s economic reports for the UK follow the recent trend of coming in below forecast levels, the odds of the Bank of England increasing interest rates this year could take another battering and the Pound may fall.
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate is currently trading in the region of 11.5655.
Swedish Krona (SEK) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
, Swedish Krona,11.5655,
Euro,, Swedish Krona,9.2086,
US Dollar,, Swedish Krona, 6.8717,
Australian Dollar,, Swedish Krona, 6.4083,
New Zealand Dollar,, Swedish Krona,5.8299,
Canadian Dollar,, Swedish Krona,6.2837,
[/table]
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