The Swedish Krona has softened against the Euro following the mornings jump to its strongest level since July 31st
In early trading the Krona jumped against its Euro peer after data showed that the country’s service industry unexpectedly expanded in July. The data has led to speculation that the Nordic nation’s economy is recovering at an accelerate rate.
At 10:18am the Krona jumped by 0.5% against the Euro
The latest PMI data showed that the Swedish services industry surged to a seasonally adjusted level of 5.6 in July, up from the 44.9 level recorded in June. It was the highest trading since May 2011 and smashed economist forecasts of an estimate of 46.7.
“This means that the total index is back in the growth-zone after having showed a weakening within the services sector during the entire second quarter,” Swedbank said. “The big increase, of more than 11 index points, should be analyzed with significant caution though, as July is a holiday month.”
The currency then began to retreat slightly as the day progressed. Optimism that the Eurozone economy is on the track to recovery boosted the Euro at the expense of the Krona.
Eurozone business expanded for the first time in 18-months in July, adding to signs that the Eurozone economy is slowly starting to stabilize. Markit’s Composite Purchasing Managers Index increased to 50.5 in July, up from the 48.7 recorded in June. It’s the first time the figure has breached 50 since January 2012.
Adding to the sense of optimism was the release of the latest Sentix Investor confidence which showed that investor confidence in the region improved to its highest level in six-months. The Index of investor confidence improved to minus 4.9 in August, far above the minus 12.6 recorded in July.
Swedish Krona (SEK) Current Exchange Rates
The US Dollar/Swedish Krona Exchange Rate is currently in the region of: 6.5871
The Pound Sterling/Swedish Krona Exchange Rate is currently in the region of: 10.1238
The Euro/Swedish Krona Exchange Rate is currently in the region of: 8.7489
The New Zealand Dollar/Swedish Krona Exchange Rate is currently in the region of: 5.1271
The Australian Dollar/Swedish Krona Exchange Rate is currently in the region of: 5.8674
(Correct as of 13:00 pm GMT)
Comments are closed.