The Pound has tumbled -63% versus the Swedish Krona (GBP/SEK) on Monday and is presently residing at 11.5640.
Sterling’s losses follow-on from last week’s speculation that the UK is experiencing a slow-down in its recovery.
However, Tuesday’s UK Industrial Production figures are expected to show a rise of 2.6% in August on the year, whilst Manufacturing Production is also forecast to advance by 3.4% in the same time period.
If both sectors show an increase in productivity the Pound may be able to recoup losses.
The bullish Swedish Krona posted gains on Monday after Sweden’s largest food retailer, ICA Gruppen AB, sold its Norwegian branch, which has been deemed unprofitable in the past six months, to Coop Norway.
The deal saw ICA walk away with 2.8 billion Swedish Krona.
ICA Chief Executive Officer Per Stroemberg said that in this situation selling the Norway business ‘is the best alternative.’ Stroemberg continued: ‘The sale of ICA Norway to Coop Norway is the best possible solution for our businesses in Norway. It results in more stores and jobs being saved against if we were running out operations on a far smaller scale than today.’
If today’s deal gains final approval from the Norwegian Competition Authority (as it’s expected to), Coop will then own one third of Norway’s market.
Director of Coop Norway Svein Fanebuster commented: ‘Taking over ICA Norway is a big lift for Coop. It is also the best solution for staff, consumers and providers when the situation is such that ICA pulls out of Norway.’ For Coop, the purchasing of ICA stores means an increased presence in areas where Coop is currently scarce.
Meanwhile, the Pound has been unsupported despite having its strongest September increase in New Car Sales in the past ten years.
New car sales are up 5.6% in September in comparison to the previous year, rising for the 31st consecutive month.
Chief Executive for the Society of Motor Manufacturers and Traders (SMMT) Mike Hawes commented on the data: ‘September’s strong performance underlined the continuing robustness of the UK new car market, particularly in the context of last September’s bumper volumes.
Demand for the new 64-plate has been boosted by intensifying confidence in the UK economy, with consumers attracted by a wide range of exciting, increasingly fuel-efficient, new cars.’
However, future highs in new car sales may not be seen as the market stabilises.
Hawes continued: ‘In the months since March—which saw an 18% jump in registrations—the growth has shown signs of levelling off as the market starts to find its natural running rate.’
Pound to Swedish Krona (GBP/SEK) Exchange Rate Forecast
The Pound to Swedish Krona exchange rate will be reliant on UK data and global activity throughout this week.
Although Sweden isn’t scheduled to release any data, the UK will see the highly significant Gross Domestic Product Estimate for September published on Tuesday – which may allow Sterling to trend higher if favourable.
Thursday may also alter the GBP top SEK exchange rate as the Bank of England (BoE) announces its latest interest rate decision.
The benchmark interest rate is presently expected to remain at 0.50%. When the BoE meeting minutes are released investors may place their bets on Sterling if the Monetary Policy Committee (MPC) sees further divergence in its voting.
Swedish Krona (SEK) Exchange Rates
|Pound Sterling||Swedish Krona||11.5755|
|US Dollar||Swedish Krona||7.2347|
|Australian Dollar||Swedish Krona||6.3118|
|New Zealand Dollar||Swedish Krona||5.6289|