The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate advanced by over 0.3% during the European session, even as the Krona was boosted against the US Dollar by Sweden’s Producer Price Index.
The Pound to Swedish Krona exchange rate hit a high of 11.7771
The Krona was able to rally against the US Dollar after Statistics Sweden published the PPI figures.
Producer prices increased by 1.0% in August on a month-on-month basis following stagnation in July.
On the year, producer prices accelerated by 2.7% last month. This was a considerable increase from the year-on-year figure of 1.4% recorded in July and the most rapid rate recorded for three months.
Import prices rose by 3.8% annually in August, and export prices were up 5.1%.
According to Statistics Sweden; ‘On the domestic market higher prices for electricity contributed to the upturn between July and August. On the export market higher prices for machinery and equipment mainly contributed to the upturn. Price increases within several product groups contributed to the upturn on the import market. A depreciation of the Swedish Krona contributed overall to the increase.’
The Krona advanced on the US Dollar after the report was published, with the USD/SEK exchange rate sliding to a low of 7.1710.
The Swedish currency was also trending in a stronger position against the Euro, moving from a low of 9.1869 to a high of 9.1712.
However, the Krona failed to gain on the Pound as the British currency was supported ahead of Bank of England Governor Mark Carney’s speech in Wales.
That being said, Sterling did come under a little pressure as the Confederation of British Industry’s Reported Sales data showed a slowing in UK sales growth in September.
The retail sales balance eased from August’s six-month high of 37 to 31, slightly higher than the 30 figure forecast.
Pound Sterling to Swedish Krona (GBP/SEK) Forecast
If BoE Governor Mark Carney adopts a hawkish outlook in his speech today, and goes so far as to mention a potential timeline for increasing interest rates, Sterling could well surge against all of its rivals and touch weekly highs against the Swedish Krona.
Before the weekend the GBP/SEK exchange rate could also be affected by Sweden’s trade balance data and the UK’s Hometrack Housing Survey.
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,11.7558,
Euro,, Swedish Krona,9.1722,
US Dollar,, Swedish Krona, 7.2119,
Australian Dollar,, Swedish Krona, 6.3441,
New Zealand Dollar,, Swedish Krona,5.8336,
Canadian Dollar,, Swedish Krona,6.4923,
[/table]
