Stronger-than-expected household consumption and upward GDP revisions prompt a less dovish Riksbank view, supporting SEK near 10.77 vs EUR.
Revised Swedish national accounts data revealed stronger historical growth but slightly weaker current momentum, with Q1 GDP declining 0.2% quarter-on-quarter while rising 2.0% year-on-year. The weakness stemmed from government consumption and investment, though household spending grew 0.6% q/q, exceeding expectations.
The release was more robust than headline figures suggested, reducing the perceived need for further stimulus. With the Riksbank focused on resource utilization and a slow recovery, the data was interpreted as marginally hawkish, influencing EUR/SEK trading near April lows at 10.77.
The Krona firmed as markets reassessed the central bank’s policy trajectory, though broader Scandinavian currencies remained steady.