Pound Swedish Krona (GBP/SEK) Exchange Rate Rallies as UK Retail Sales Surge
The Pound Sterling Swedish Krona (GBP/SEK) exchange rate rose this morning, and the pairing is currently trading at an inter-bank rate of 12.1100Kr.
UK retail sales surged in March, with the figures rising by a higher-than-forecast 1.1% between February and March.
Annual retail sales rose by a massive 6.7%, which likely buoyed Sterling as this was the largest annual rise since October 2016.
The Office for National Statistics (ONS) stated that the surge in spending was thanks to a rise in sales at food stores and non-store retailing such as internet sites as consumers shrugged off Brexit worries.
Commenting on the data, Rhian Murphy, Head of Retail Sales at the ONS said:
‘March’s mild weather boosted sales, with food shops also recovering after a weak February.
‘Over the longer term, department stores were the only shop type to see their sales shrink.’
Swedish Krona (SEK) Slides as Unemployment Rises to Eight-Month High
On Thursday, it was revealed that March’s unemployment rate rose to 7.1% despite expectations it would remain unchanged at 6.6%, being the highest rate of unemployment since last June.
This weighed on the Swedish currency, as following this data release the Krona fell against Sterling.
Sterling (GBP) Rises as UK Inflation Stable
On Wednesday data revealed UK inflation remained stable in March, hitting 1.9%, just below the Bank of England’s (BoE) 2% target.
Despite this being below the bank’s target rate, the UK’s modest inflation rate is helping the BoE hold off on any fresh interest rate hikes while it waits for the Brexit uncertainty to clear.
However, the ONS revealed that UK house prices rose at the slowest rate since September 2012.
Commenting on this, Head of Inflation at the ONS, Mike Hardie said:
‘Annual house price growth has slowed to the lowest rate in close to seven years.
‘Growth in Wales and the west of England was offset by a sustained fall in London and falling prices in the South East for the first time since 2011.’
Pound Swedish Krona Outlook: Will the GBP/SEK Exchange Rate Fall as Brexit Deadlock Continues?
Looking ahead to Tuesday, it is likely the Swedish Krona (SEK) could rise against the Pound (GBP) following the release of the Eurozone’s preliminary consumer confidence figures.
If April’s consumer confidence rises slightly, the Swedish Krona could receive an upswing in support.
Reports have suggested that cross-party Brexit talks are set to continue over Parliament’s Easter recess, which could cause movement in Sterling exchange rates depending on how they progress.
If the Conservatives and Labour are still unable to reach a Brexit compromise, and there continues to be no sign of movement on either side’s ‘red lines’, the Pound Swedish Krona (GBP/SEK) exchange rate is likely to fall.