The GBP/SEK currency pair settled above Friday’s low of 12.8320, its weakest level since August 7th, in the wake of Riksbank’s policy decision and after data showed UK manufacturing sector had contracted more than expected in August.
The S&P Global UK Manufacturing PMI came in at a reading of 47.3 in August, down from 48.0 in July, against expectations of 48.3.
Businesses cited weak new orders and intense competition, as global demand was still subdued amid US tariff uncertainty.
On the other hand, UK services sector growth was the fastest in a year in August, surpassing market forecasts.
Meanwhile, Sweden’s Riksbank kept its key policy rate intact at 2% at its August meeting, in line with market consensus.
Although inflation has risen above target, the upturn is expected to be only temporary.
Still, economic growth remains subdued, while household consumption – cautious.
The Swedish central bank flagged another possible rate cut later in 2025 in case inflation subsides and economic weakness continues.
The exotic Forex pair lost 0.83% for the week.
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