GBP/SEK Exchange Rate Stable Following UK Constriction PMI
After roaring higher on Thursday, the Pound Swedish Krona (GBP/SEK) exchange rate is trading in a narrow range this morning following the release of the latest UK construction PMI.
At the time of writing the GBP/SEK exchange rate is trading slightly below its opening rate but remains close to a one-week high.
Pound Swedish Krona (GBP/SEK) Exchange Rate Steady on UK Construction PMI
Following on from yesterday’s surge, the Pound (GBP) looks to content to consolidate its gains against the Swedish Krona and the majority of its other peers this morning following the release of the UK’s latest construction PMI.
Data published by ISH Markit showed a surprise acceleration in UK construction sector activity last month, with the index jumping from 52.1 to 53.2 in October, beating forecasts of a modest slide to 52.
While the headline figures proved positive analysts were a little more wary, given that the fundamentals remained weak.
Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply said:
‘Optimism was at its lowest level for six years, as the sector remained stifled by client hesitation, fears about the health of the UK economy and continued Brexit uncertainty, resulting in slower growth of new orders and purchasing.’
Swedish Krona (SEK) Tempered by Riksbank Minutes
At the same time trade in the Swedish Krona (SEK) has narrowed this morning following the publication of the minutes from the Riksbank’s latest policy meeting.
The minutes were largely in line with market expectations, confirming that the bank will target a rate hike in either December or February, but making no commitments to either month in light of growing uncertainty.
One extract read:
‘Several members emphasised the uncertainty factors around developments abroad and that these can also have significant negative consequence for the Swedish economy in a bad scenario.’
GBP/SEK Exchange Rate Forecast: Will UK Growth have Picked up in Q3?
Looking ahead to next week’s session, the main catalyst for movement in the Pound Swedish Krona (GBP/SEK) exchange rate looks set to be the release of the UK’s latest GDP estimate in the tail end of the week.
This may see Sterling strengthen next week if UK growth is shown to have picked up in the third quarter as some economists suspect following some strong retail sales over the summer.
In the meantime the Pound may also find some support at the start of the week, if the UK’s Services PMI crept higher in October as some analysts suspect.
In terms of the Swedish Krona it may be able see off any advances from Sterling through the first half of the week as thanks to an expected pick up in Swedish services sector activity and industrial production.