Retail Sales Bolsters Swedish Krona & Bets on Rates Hike

The Swedish krona gained today after the report showed the retail sales grew more than predicted, increasing the probability of the interest rates hike.

The annual growth of the retail sales was 5.5 percent in September, 4.5 percent more than a month earlier. That’s above the median forecast of the 4.2 percent increase. The central bank previously cut the long-term target for the interest rates increases because of the slower global economic growth.

Niels Christensen, the chief currency strategist at Nordea Bank AB said:

The Riksbank will be quite pleased with the retail sales numbers, adding a little more growth to the third quarter. Domestic economic data is one of the key drivers for the krona because it drives rate expectations.

USD/SEK went from 6.7766 down to 6.7231 as of 18:39 GMT today. Yesterday, it rose from 6.7285 to 6.7766.

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