The Pound (GBP) was experiencing mixed trading against its peers on Thursday as investors were jittery on the day which could change the UK forever. With Scottish voters flocking to the polls, the markets were nervous due to the uncertainty over what the result of the referendum will be.
Against the Swedish Krona (SEK) the Pound was experiencing mixed trading after the latest Gross Domestic Product (GDP) data out of the Scandinavian nation showed that the Swedish economy expanded more than expected in the second quarter.
According to the Swedish Statistics agency, the country’s economy expanded at a seasonally adjusted rate of 0.7%. The increase was more than the 0.2% increase expected by economists. On a year on year basis, the economy grew by 2.6%, far better than the expected rise of 1.9%. The previous figure was revised to 1.7%.
Immediately after the data was released the Pound dipped briefly before regaining ground to settle in the region of 11.65.
Against the Norwegian Krone (NOK) the Pound declined sharply after the Norwegian Central Bank said that it was, leaving its interest rates unchanged and said that it will likely begin to raise them after 2015 as policy makers across Europe and the USA continue to commit to massive monetary stimulus programmes.
“The analyses in the monetary policy report presented today imply that the key policy rate will remain at the present level to the end of 2015, rising gradually thereafter,” Governor Oeystein Olsen said in a statement
Signs of growing consumer demand in Scandinavia’s richest economy could see the Norwegian central bank hesitate with making any further rate cuts. Unemployment was 2.9% in August while the economy, excluding oil and gas production, expanded 1.2% in the second quarter, twice the estimated pace.
Softer than forecast Year on year UK retail sales data weighed upon the Pound. According to the Office for National Statistics, sales increased by 3.8%, short of the 4.1% forecast by economists. On a monthly basis, sales rose as forecast by 0.4%.
The rate decision saw the Norwegian Krone rally strongly. Against the Pound it surged by 0.80%.
Pound Sterling to Swedish Krona and Norwegian Krone Exchange Rate Forecast
The UK currency is forecast to experience mixed trading throughout Thursday’s session, as the markets will be wary over the Scottish Referendum. For the latest updates on the voting check out our live blog feed.
With the outcome of the voting so close uncertainty is high. A win for the Yes campaign will see the Pound fall sharply against its peers whilst a No win could see it rally strongly.
UPDATE
After the votes were tallied and unionists claimed victory in the Scottish referendum the Pound strengthened against rivals like the Swedish Krona and Norwegian Krone.
The GBP/SEK exchange rate climbed by 0.6% while the GBP/NOK exchange rate jumped over 0.2%.
With investors jubilant about the outcome of the referendum, the Pound is likely to continue trending in a stronger position for the rest of the day.
Next week Swedish reports to focus on include the nation’s business confidence/consumer confidence measures and the producer price index.
Norwegian unemployment stats are also scheduled for publication next week.
