Pound Swedish Krona (GBP/SEK) Exchange Rate Drops as PM Resigns
The Pound Sterling Swedish Krona (GBP/SEK) exchange rate has fallen today and the pairing is currently trading at an inter-bank rate of 12.1560Kr.
This week Sterling has been battered by Brexit pessimism as Prime Minister Theresa May faced growing pressure to announce her resignation.
It all came to a head today when Theresa May resigned her position as leader and announced the date of her departure of 7 June following a meeting with the Chairman of the 1922 Committee.
May met Sir Graham Brady at 09:00GMT before announcing her departure in a tearful address outside 10 Downing Street.
Swedish Krona (SEK) Flat as Swedish PPI Slides to 20-Month Low
On Friday data showed that the Swedish Producer Price Index (PPI) slumped by -0.7% in April.
This was the largest monthly decline since August 2017 which dampened sentiment in the Krona.
Year-on-year, inflation rose by 4.9%, the lowest rise since April 2018.
This suppressed the Swedish Krona, leaving the currency muted against the Pound.
Sterling (GBP) Flat as Monthly Retail Sales Stagnate
On Friday data revealed that retail sales in the UK stagnated in April rather than slumping as forecast.
Year-on-year, retail sales jumped by a higher-than-forecast 5.2%.
The Office for National Statistics (ONS) stated that consumers bought more clothes, fuel and online shopping purchases.
However, this was offset by falls in other main sectors with retail sales excluding fuel sliding by -0.2%.
Pound Swedish Krona Outlook: Will Disappointing Swedish Consumer Confidence Weigh on SEK?
Looking ahead to the start of next week, the Swedish Krona (SEK) could slide against the Pound (GBP) following the release of the Swedish consumer confidence figures.
If it is revealed on Tuesday that consumer confidence has slumped further than expected, it could dampen sentiment in the Swedish Krona.
Meanwhile, the UK inflation report hearings report is also due for release on Tuesday morning which would likely reduce demand for Sterling.
If the Treasury Committee is dovish about the inflation outlook for 2019, and suggest that core inflation will struggle to meet the Bank of England’s (BoE) target, the Pound Swedish Krona (GBP/SEK) exchange rate could fall.