The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate firmed on Monday as manufacturing PMI and retail sales data out of Sweden missed economist forecasts. The Pound Sterling to Norwegian Krone exchange rate strengthened more than 1.20% as oil prices fell and Norwegian manufacturing activity contracted.
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate reached a session high of 13.0998
Data released by the Swedish National Association of Purchasing & Logistics showed that manufacturing growth in the Scandinavian nation slowed in May from the one-year high it achieved in April. The Purchasing Managers Index (PMI) dropped from 55.7 to 54.8. In a PMI any number above 50 indicates expansion whilst a number below indicates contraction.
The cause of the fall in activity was blamed on a drop in new orders. The corresponding new orders index fell from 59.1 to 55.9. A separate employment sub index also disappointed as it fell by 1.5 points to 52.0.
Also putting pressure on the Swedish Krona was a separate data release, which showed that Swedish retail sales growth slowed to the lowest level seen in four months.
According to Statistics Sweden, retail sales rose 3% on an annual basis; a fall from the revised figure of 4.7% recorded in April and was well below economist expectations for a rise to 4.8%. On a month-on-month basis retail sales fell -0.2%, a fall from the 0.7% increase seen in the preceding month and below the 0.5% gain forecast.
The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate reached a session high of 12.0076
Sterling also advanced strongly against the Norwegian Krone as data showed that manufacturing activity in Norway contracted unexpectedly last month.
According to Oslo based Statistics Norway, the nation’s manufacturing PMI fell from 50.2 to 46.6. Economists had been expecting a reading of 50.1.
The Norwegian currency was also weakened by a fall in oil prices, which was caused by increased expectations that production in OPEC nations would remain higher and stoked worries over an oversupply in the global oil markets.
“OPEC continues to produce well above target, and also well above demand for its oil,” said Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt.
UK Manufacturing Activity Slows
Further gains for the Pound Sterling were restrained as UK manufacturing PMI data missed expectations.
The report released by Markit showed that manufacturing activity in the UK increased to a reading of 52.0, below forecasts for a rise to 52.5.
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