Euro to Swedish Krona (EUR/SEK) Exchange Rate Today: Single Currency Forecast to Hold Advance
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Yesterday the Krona registered widespread declines as domestic Growth Domestic Product figures showed that the Swedish economy expanded by just 1.9% on an annualised basis in the second quarter – unchanged from the level of growth recorded in the first quarter and 0.5% short of economists’ estimates.
Further Krona weakness was caused by the news that a major Swedish economic index slipped in July.
The National Institute of Economic Research’s economic tendency indicator dropped from 101.3 in June to 100.4 this month. The 0.9 point decline was largely a result of the services indicator plummeting by over 2 points.
According to a statement issued with the report; ‘After the fall, the consumer confidence indicator is largely in line with the historical average. Households were more negative about their personal finances than in June, but slightly more positive about the Swedish economy. The building and civil engineering indicator also decreased slightly, while the manufacturing and retail indicators increased somewhat.’
The EUR/SEK exchange rate moved to an eight-week high after the report was released.
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate also advanced. Gains in the USD/SEK pairing were aided by upbeat US news.
On Thursday the Euro maintained a bullish relationship with its European rival even as the Eurozone’s Consumer Price Index for July slowed from 0.5% to 0.4% – falling even further below the European Central Bank’s target and adding to the argument in favour of additional ECB stimulus.
Other economic reports from the 18-nation currency bloc, including Germany’s retail sales and unemployment figures, surprised to the upside.
Euro to Swedish Krona Exchange Rate Forecast
While tomorrow’s US Non-Farm payrolls report is likely to be the main market mover before the weekend, we forecast that volatility in the Euro to Swedish Krona exchange rate could be caused by the Eurozone’s Markit Manufacturing PMI for July (French and German measures of Manufacturing are also scheduled for release) as well as Sweden’s own Manufacturing PMI.
It is hoped that the Swedish measure stayed well in expansion territory in July.
If the French manufacturing gauge adds to concerns regarding the economic stability of the so-called ‘Poor-man of Europe’ the EUR/SEK pairing could trim gains
However, if this proves not to be the case it’s entirely likely that the Euro to Krona exchange rate could end the week on a high.
The Euro to Swedish Krona (EUR/SEK) exchange rate is currently trending in the region of 9.2278.