Swedish Krona is starting the week on a positive note posting some modest gains against the British Pound. On the currency market, Krona settled at 12.3456 up 0.28% against the Pound on Monday.
Monday’s trading session saw GBP/SEK within the range of 12.3886 -12.3098. However, during the early Asia trading hours, the GBP/SEK exchange rate was seen quoted further down at 12.3298.
Sweden’s manufacturing data for November hit the market on Monday and they were disappointing. This is the third consecutive month of contraction in the manufacturing sector. Sweden’s manufacturing PMI contracted to 45.4 in November versus 46.o reading seen in October. The figures missed the market consensus as well. Most economists forecasted a 47.1 PMI reading. Regardless of gloomy manufacturing PMI, Krona rallied modestly.
The market is still digesting latest GDP figures which saw Sweden economy accelerating at a faster pace than the market consensus. This is supportive of the Riksbank’s plans to hike rates during its last policy meeting of the year on 19 December.
In other news, the European manufacturing data released during Monday’s trading hours revealed upbeat manufacturing sector activity. However, the euro zone manufacturing activity remains below the 50 mark, which indicates contraction.
From the other side of the monetary policy spectrum, the UK manufacturing activity contracted for the seven months in a row. UK’s Markit Manufacturing PMI grew to 48.9 in November versus 48.3 in October. The downbeat figures reflect tougher conditions for the UK economy mainly due to the uncertainty created by the Brexit, which has motivated investors to put their investment decisions on hold.
Looking over the UK economic calendar the Markit Construction PMI figures are the only risk event that can generate some volatility for the GBP crosses. According to the market consensus currency traders should expect a reading of 44.5 versus 44.2 prior readings.