Pound Sterling to Swedish Krona (GBP/SEK) Exchange Rate Forecast to edge Lower despite Mixed Swedish Data
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate edged lower by around -0.25% on Tuesday.
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After British Gross Domestic Product failed to meet with forecasts, the Pound softened versus many of its major peers. This is despite the fact that the growth figures still improved, recording the strongest annual growth since 2007.
The Swedish Krona also softened versus most of its major rivals on Tuesday. This can be attributed to disappointing results from producer price data. However, the losses have been laboured thanks to slight improvement in the nation’s trade balance.
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate is currently trending in the region of 12.4695.
Pound Sterling (GBP) Exchange Rate Trending Lower as Growth Misses Estimates
Although fourth quarter Gross Domestic Product registered the largest growth since 2007, the Pound slumped as traders were expecting more. Fourth quarter Gross Domestic Product was forecast to increase from 2.6% to 2.8%, but the actual result was only 2.7%.
Howard Archer of IHS Global Insight stated; ‘Despite growth losing some momentum in the latter months of 2014, we are largely upbeat about growth prospects for 2015 and expect GDP to expand 2.7% – although any sustained political uncertainty would pose a significant downside risk … However, there is the very real risk that growth could take a significant hit in 2015 from heightened political uncertainty in the run-up to May’s general election weighing down on business confidence and investment. This would be magnified if there is further marked political uncertainty following the election.’
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate has dropped to a low today of 12.4212.
Swedish Krona (SEK) Exchange Rate Edges Lower on Mixed Data
After Swedish data produced a mixed-bag of results, the Krona softened versus many of its most traded currency competitors. The year-on-year Producer Price Index declined from 1.35 to -0.1%. On a monthly basis, however, PPI gained fractionally from -0.4% to -0.3%. In addition, the Trade Balance increased from a deficit of -0.1 billion to a surplus of 0.4 billion.
Thursday will be a significant day for those invested in the Krona. Swedish Business Confidence, Consumer Confidence, Lending to Households and Retail Sales data will all have the potential to provoke Krona volatility.
Pound Sterling to Swedish Krona (GBP/SEK) Exchange Rate Forecast to Hold Steady
With a complete absence of domestic data to curb the trend, the Pound Sterling to Swedish Krona (GBP/SEK) exchange rate is likely to hold steady for the remainder of Tuesday.
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate advanced to a high today of 12.5455.