Pound Swedish Krona (GBP/SEK) Exchange Rate Falls as Likelihood of No-Deal Brexit Increases
The Pound Sterling Swedish Krona (GBP/SEK) exchange rate slipped today and the pairing is currently trading at an inter-bank rate of 12.1138Kr.
The Pound has been subdued by Brexit pessimism with the risk of a no-deal rising as the leadership contest to succeed Prime Minister Theresa May begins.
Candidates for Theresa May’s job are now under pressure to deliver a more decisive break with the European Union on 31 October.
This comes after the European parliamentary election results revealed that the six-week-old Brexit Party had made substantial progress, gaining 29 MEPs.
However, Jeremy Hunt, Conservative leadership candidate warned that his own party would be committing ‘political suicide’ if it attempted to push through a no-deal Brexit.
Swedish Krona (SEK) Rises despite Consumer Confidence Sliding to Six-Year Low
Data has revealed that Swedish manufacturers and households became more pessimistic in May.
This comes as the Swedish economy began to slow after years of growth.
Consumer confidence slipped to 91 from a downwardly revised 95.5, the lowest level in more than six years.
Meanwhile, manufacturing sentiment slipped to 103.7 from 107.7 in the previous month.
This likely weighed on the Swedish Krona, however it was still able to rise against Sterling.
Swedish Krona (SEK) Buoyed despite Trade Tensions
The trade war between the US and China is adding to domestic problems for the Swedish economy.
The weakness that has already hit the Eurozone, has begun to affect the export-dependent Sweden.
Exports are beginning to lose momentum and domestic demand has slipped thanks to the cooling housing market.
If US President Donald Trump impose tariffs on European cars, including those models made in Sweden, such as Volvos, this could see the Riksbank unable to go ahead with plans to raise interest rates above zero.
Pound Swedish Krona Outlook: Will Disappointing Swedish GDP Weigh on SEK?
Looking ahead to Wednesday, the Swedish Krona (SEK) could slip against the Pound (GBP) following the release of the latest Swedish GDP numbers.
If Q1 2019 GDP does not rise as high as forecast, it could dampen sentiment in the Krona.
Meanwhile, it is likely that further Brexit pessimism will weigh on Sterling.
If reports suggest that there are further Conservative leader contenders calling for a no-deal Brexit, it could cause the Pound Swedish Krona (GBP/SEK) exchange rate to slide.