The Swedish Krona fell to its lowest level in three weeks against the Pound and Euro on Wednesday after data releases disappointed investors and as comments by a BOE policy maker buoyed the UK currency.
Sentiment towards the Swedish Krona fell data showed that consumer confidence tumbled and that the Scandinavian nations trade balance came in well below expectations.
According to the National Institute of Economic Research’s manufacturing confidence index fell to 99.8 from a revised figure of 103.0 in February. Consumer confidence meanwhile fell to 99.6 from a revised figure of 99.7. Both figures were well below economist forecasts with manufacturing confidence expecting to come in at 102.9 and consumer confidence was expected to come in 102.8.
The disappointing data increased pressure upon the Swedish National Bank to cut interest rates again over the coming months. Economists are forecasting that the Central Bank will maintain rates at next month’s policy meeting.
A separate report released by Statistics Sweden showed that the nation’s trade surplus shrank from January’s figure of 5.8 billion SEK to 5 billion SEK in February. The figure disappointed analyst expectations for the surplus to rise to 6.1 billion SEK.
The Euro managed to retain its gains against the Krona despite data showing that business and consumer confidence in Germany, the Eurozones largest economy was weaker than hoped. Comments by ECB policy makers also dented demand for the Euro.
The Pound meanwhile was boosted on Wednesday after a Bank of England policy said that he thinks interest rates will definitely increase as the UK economy continues to improve.
Swedish Krona Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Swedish Krona,
,US Dollar,0.1550 ,
Swedish Krona,, Pound Sterling,0.0938 ,
Swedish Krona,,Euro,0.1123 ,
Swedish Krona,,Australian Dollar,0.1680 ,
[/table]
Comments are closed.