Pound Sterling Swedish Krona (GBP/SEK) Exchange Rate Left Muted as Sweden’s Covid-19 Rate Falls Sharply
The Pound Sterling Swedish Krona (GBP/SEK) exchange rate remained flat on Wednesday morning. This left the pairing trading at around 11.3370Kr.
As countries around the world continue to face renewed coronavirus outbreaks, the latest figures from Sweden suggest the country is bringing the virus under control.
Speaking to reporters on Tuesday, state epidemiologist Anders Tegnell said:
‘That Sweden has come down to these levels is very promising.
‘The curves are going down and the curves for the seriously ill are beginning to approach zero.’
The Health Agency of Sweden noted that since the country hit a peak in late June, the infection rate has fallen sharply.
This development follows the controversy over the government’s decision not to place Sweden under a full lockdown. This coincided with a high death rate compared to other countries in the Nordic region.
Tegnell also commented on the use of facemasks, something the World Health Organization recommends when social distancing is not possible.
‘With numbers diminishing very quickly in Sweden, we see no point in wearing a face mask in Sweden, not even on public transport.’
Meanwhile, the Swedish Krona also received some support this morning after data revealed business confidence rose more than expected in July.
Confidence jumped from 68.9 to a better-than-expected 80.7, which boosted SEK against the Pound.
However, data did show consumers grew increasingly wary in July. Consumer confidence slipped back from 84 in June to 83.3, which left the pairing flat.
Sterling (GBP) Flat as UK Signs Deal For 60 Million Doses of Potential Covid-19 Vaccine
Meanwhile, reports revealed that Britain has signed a deal for up to 60 million doses of a potential coronavirus vaccine.
This is the fourth such arrangement made by the UK. Although financial terms were not disclosed, in a statement, Sanofi and GlaxoSmithKline said that regulatory approval could be reached by the first half of 2021.
Government ministers have stressed the importance of securing supplies from a range of candidates early. Business minister, Alok Sharma said:
‘The fact remains that there are no guarantees.
‘It is important that we secure early access to a diverse range of promising vaccine candidates […] to increase our chances of finding one that works.’
So far Britain has struck deals with AstraZeneca for 100 million doses, 30 million doses of a potential vaccine from BioNTech/Pfizer. A deal was also struck with Valneva for another 60 million doses.
However, the Pound remained under pressure as Prime Minister Boris Johnson warned a ‘second wave’ of coronavirus cases has started in Europe.
It was also revealed that travellers that returned from Belgium, Luxembourg and Croatia would face quarantine once they returned to Britain.
Pound Swedish Krona Outlook: Brexit and Coronavirus in Focus
Looking ahead, the Pound (GBP) could edge higher against the Swedish Krona (SEK) following any upbeat reports about Brexit.
If reports reveal both the UK and EU are optimistic a free trade agreement will be reached by the end of the transition period, Sterling will receive a boost.
However, if the coronavirus infection rate continues to slide in Sweden it will offer SEK support and leave the Pound Swedish Krona (GBP/SEK) exchange rate largely flat.