Sweden’s Krona Soars After Confidence Data Trounces Estimates
Sweden’s krona soared after a report showed confidence among consumers and businesses rose more than analysts had anticipated in November.
The krona gained 0.7 percent to trade at 8.89 per euro as of 9:37 a.m. in Stockholm. Against the dollar, the krona also jumped 0.7 percent and traded at 6.5891, making it today’s biggest gainer against the euro, the dollar and the yen of the major currencies tracked by Bloomberg.
Sweden’s central bank in October kept its main interest rate at 1 percent and signaled it will be able to start tightening policy late next year as the outlook for the largest Nordic economy improves. Gross domestic product will expand 2.6 percent next year after growing 0.7 percent in 2013, the Riksbank said Oct. 24.
“Swedish consumers see that happy days are coming,” Andreas Wallstrom, an economist at Nordea Bank AB in Stockholm, said in a note to clients. “Households became more optimistic both on their own economy and the overall Swedish economy.”
GDP grew 0.5 percent in the third quarter from the second, according to the median estimate of five economists surveyed by Bloomberg. Statistics Sweden is due to publish GDP data Nov. 29.
Sweden’s krona is also the best performer in the past week of a group of 10 currencies tracked in Bloomberg correlation weighted indexes, having appreciated 1.1 percent in the period.
An index measuring consumer confidence in November showed a reading of 104.9 today, compared with a Bloomberg survey median estimate of 102. The manufacturing confidence reading was 105.8, compared with 100.6 foreseen in the Bloomberg survey.
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