GBP/SEK Exchange Rate Rangebound as Optimism Grows for Sweden’s Economy
The Pound to Swedish Krona (GBP/SEK) exchange rate held steady today, with the pairing currently trading around 11.69kr.
The Swedish Krona (SEK) failed to gain on the Pound (GBP) today despite better-than-expected Swedish inflation data for May. The year-on-year figure rose from -0.4% to 0%, while the monthly figure increased from 0.3% to 0.6%.
As a result, some Swedish currency traders have become increasingly optimistic about Sweden’s economic recovery in the months ahead.
Sweden’s Finance Minister Magdalena Andersson:
‘It’s hard to judge [whether Sweden has been better or worse affected than other similar countries thus far], not least because the statistics aren’t comparable yet. There is however some data showing the fall in consumption in Sweden hasn’t been as great as in some other countries.’
However, we could see the SEK/GBP exchange rate begin to edge higher by the end of the week as Sweden’s economic outlook continues to improve.
Pound (GBP) Steady as UK Markets Brace for Q1 UK Growth Report
The Pound (GBP) has struggled today with growing concerns over tomorrow’s release of the UK’s GDP figure for the final quarter. With the figure expected to fall by a staggering -18.4%, investors are becoming increasingly concerned for the British economy in the months ahead.
Meanwhile, last night saw the release of the UK RICS Housing Price Balance for May, which fell from -22% to -32%.
Ross Counsell, director at Good Move, was however more optimistic, commenting:
‘Today’s results point to a slight improvement in the outlook for sales over the coming 12 months.’
‘However, we must not forget the impact that the current pandemic has had on both buyers and sellers. Today, people are a lot more cautious with their finances due to a decrease in home income caused by loss of work and other factors.’
However, with the UK Government increasingly being pressurised to scrap the 2-metre distancing rule. As a result, we could see Sterling edge higher if No 10 announces any further easings of its Covid-19 lockdown restrictions.
GBP/SEK Outlook: Sterling Could Fall as UK GDP Forecast for April Remains Bleak
Pound (GBP) traders will be looking ahead to tomorrow’s release of the UK’s industrial production figure for April. However, if this sinks to -15%, then we could see GBP suffer.
Tomorrow will also see the publication of the final UK GDP figure for April. As a result, we’re likely to see GBP/SEK suffer as the UK’s growth is expected to plummet by -18.4%.
Swedish Krona (SEK) traders will be keeping a close eye on Sweden’s economic developments into the weekend. If the Swedish Government continues to remain positive about the economy’s recovery, we could see the GBP/SEK sink.