Sweden’s Krona has successfully managed to remain well-supported against the Pound and strikes 3 consecutive days of gains. At the interbank market, on Wednesday the GBP/SEK exchange rate settled down -0.26% at 12.4597, but the pair was seen quoted within a trading range of 12.5207 and 12.4018.
GBP/SEK – Improved Services PMI figures in Sweden have driven SEK higher against the Pound
Sweden’s Services PMI expanded to 52.5 in January compared to 49.1 in December, which was upwardly revised from 48.7. Sweden’s services sector rebounded to 5-months high, posting the first reading above the 50 mark since August 2019. A reading above the 50 mark suggests expansion in the services sector.
Meanwhile, the production in the private sector and the industrial orders disappointed the market. Industrial production in Sweden performed worse than expected in December as factory activity contracted by -1.6% compared to a downwardly revised 1.7% in November. At the same time, the annual rate of growth in the private sector declined by -2.4% versus a downwardly revised 0.4%.
In a separate report, industrial orders in Sweden fell by -4.7% in December compared to a downwardly revised -1.8% in November. This was the lowest reading in 4 months.
Looking forward on the data front, the Swedish economic calendar is stripped of relevant risk events that can disrupt the market volatility.
Elsewhere, according to a recent Reuter’s poll, the British Pound is expected to appreciate by 4% by year-end. Wall Street investors seem confident that despite the big hurdles ahead the UK and the EU counterparts will be able to strike a trade deal by the year-end.
Looking over the technical pattern, the GBP to SEK pair is bouncing off of the yearly opening price of 12.4256. The bullish backdrop in the SEK has started to fade away once the GBP/SEK pair tried to fall below the yearly opening price.
GBP/SEK was down -0.16% to 12.4403 in the late Asian session on Thursday.