Pound Swedish Krona (GBP/SEK) Exchange Rate Rises as Swedish Unemployment Hits Four-Year High
Today saw the Pound Sterling Swedish Krona (GBP/SEK) exchange rate edge up, with the pairing currently trading around 12.0447kr.
The Swedish Krona came under pressure as Sweden’s unemployment rate for August unexpectedly jumped to a four year high of 7.4%, prompting Sweden’s Riksbank to revise its view that the country’s labour market remains ‘strong’.
Martin Enlund, FX strategist at Nordea called the reading a ‘catastrophe’ while Claes Mahlen at Handelsbanken noted:
‘Another bad reading, [which] adds to our view that Riksbank will ultimately call off planned rate rises.’
Sterling (GBP) Rises as PM Insists ‘Good Chance’ of Deal
The Pound rose against the Swedish Krona following Monday’s Brexit discussions between Prime Minister Boris Johnson and European Commission President Jean-Claude Juncker.
The Commission revealed that the UK failed to present a solution to the Irish backstop, with Luxembourg’s Prime Minister, Xavier Bettel, describing the situation as a ‘nightmare’ and attacking Boris Johnson’s approach to Brexit.
Sterling still managed to edge up as the Prime Minister insisted there was still a good chance the UK would leave the bloc with a deal.
Pound (GBP) Rises Ahead of Supreme Court Decision
Meanwhile, on Tuesday Johnson said he will ‘wait and see what the judges say’ before deciding whether he will recall parliament.
Britain’s top court has now heard evidence from both the government and campaigners protesting the prorogation.
The proceedings will last three days and the court will then decide whether or not Boris Johnson’s decision to suspend parliament was unlawful.
Johnson’s opponents have insisted the suspension is being used as a way to stop parliament preventing a no-deal Brexit, however, the Prime Minster has denied these claims.
Pound Swedish Krona (GBP/SEK) Outlook: Will Strong Inflation Buoy Sterling?
Looking ahead to Wednesday, the Pound (GBP) could continue to edge up against the Swedish Krona (SEK) following the release of the UK’s inflation data.
If August’s Consumer Price Index (CPI) rises higher than forecast, meeting the Bank of England’s (BoE) target, Sterling sentiment will rise.
Meanwhile, August’s Retail Price Index could offer further support to the Pound.
If monthly prices rebound from July’s stagnation, the Pound Swedish Krona (GBP/SEK) exchange rate is likely to rise.