The Swedish Krona managed to tick higher against the Pound on Thursday as weaker than forecast UK retail sales data caused investors to further pare their bets that the Bank of England will raise interest rates before the end of the year.
Further rises for the Swedish currency are unlikely however as domestic data out of Sweden further highlighted the challenges facing the Nordic nation’s economy.
According to Statistics Sweden’s producer and import price index producer prices in total fell by 0.1% in June.
On the export, import and domestic markets prices also dropped by 0.1% from in the May to June period.
The cause for the drop was being blamed on the seasonal decrease in prices for heating due to the hotter weather in the summer.
Further declines in ppi were restrained however as food product prices increased slightly.
Year-on-year, producer prices increased by 2.3% in June, down from the previous month’s figure of 2.8%.
During the same period prices have increased 3.9% on the export market and 3.2% on the import market.
On the domestic market prices have increased 0.7% compared to June of last year while prices for domestic supply have increased 1.9% during the same period.
A separate report also painted a grim picture for employment in Sweden as data showed that unemployment in the nation increased to its highest level in four years in June.
The total number of Swedes out of work increased to 493,000 in June, up from the 484,000 in the same month in the previous year. In May the figure was 413,000.
Despite the poor data releases the Pound still softened as Thursday’s retail sales data came in below economist expectations.
According to the UK’s Office for National Statistics said retail sales rose just 0.1% in June from a month earlier, falling short of expectations for a 0.3% increase.
On a year-over-year basis, retail sales rose 3.6% in June, below expectations for a 3.9% gain, after rising at an annual rate of 3.7% in May.
As a result of the data the Pound weakened against the Euro and slipped to a one-month low against the US Dollar.
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,11.6366 ,
Euro,,Swedish Krona,9.2206 ,
US Dollar,,Swedish krona,6.8426 ,
[/table]
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