Pound Sterling Swedish Krona (GBP/SEK) Exchange Rate Benefits from Swedish Consumer Gloom

GBP/SEK Exchange Rate Rises as Swedish Consumer Confidence Disappoints while UK Mortgage Approvals Surprise

This morning, the Pound Swedish Krona (GBP/SEK) exchange rate has risen and is currently trading at an inter-bank rate of 11.87kr.

Swedish consumer confidence slid further than expected in January, to 92 from 96.4, which likely weighed down the Krona (SEK) against Sterling (GBP).

Meanwhile, the UK saw a decent level of mortgage approvals December, with the figure not falling as far as expected, helping GBP to rise against SEK.

Despite this generally positive figure, the data did show that mortgage approvals had dropped to an eight-month low, with the accompanying consumer credit figures rising at their slowest pace since 2014.

Yesterday: Pound (GBP) Slips on Brexit Anxieties after Victory for Theresa May in Parliamentary Vote

It proved to be a relatively successful evening in Parliament yesterday for Theresa May as the government was able to defeat attempts made by MPs to take control of the Brexit process.

Both the ‘Grieve’ and ‘Cooper’ amendments were defeated, which could have allowed MPs to block a no-deal Brexit.

Meanwhile, the government’s favoured ‘Brady’ amendment was passed with help from the Labour Party, which calls to replace the Irish backstop with ‘alternative arrangements’.

Despite the passing of this amendment the European Council President, Donald Tusk, responded immediately by saying that the EU was not prepared to renegotiate any deal with the UK.

Tusk’s spokesman stated:

‘The withdrawal agreement is, and remains the best and only way to ensure an orderly withdrawal of the UK from the EU. The backstop is part of the withdrawal agreement, and the withdrawal agreement is not open for renegotiation.’

Yesterday: Swedish Krona (SEK) Rallies despite Poor Swedish Trade Balance

On Monday, the Swedish trade balance for December was released, revealing a slide in Kroner to -4.7bn from the previous 2.8bn.

Following this, the Pound Swedish Krona (GBP/SEK) exchange rate remained at relatively high levels, hitting a high of 11.95kr, before dipping on Tuesday evening into Wednesday morning.

GBP/SEK Outlook: Will Poor UK Consumer Confidence Dampen the Pound?

Tomorrow will see the release of the UK’s Gfk consumer credit data for January, which is forecast to contract further, to -15, potentially weakening the Pound (GBP).

Brexit is also likely to remain in the headlines, and if the likelihood of a no-deal increases, it could see the Pound Sterling Swedish Krona (GBP/SEK) slide once again.

Friday will see the release of the Swedish purchasing manager’s index for manufacturing, which is forecast to see a slower rate of growth in January compared to the previous month, which could dent the Swedish currency (SEK).

Hannah Wilson

Contact Hannah Wilson