Pound to Swedish Krona (GBP/SEK) Exchange Rate Heads Higher as UK Covid-19 Vaccine Rollout Intensifies

GBP/SEK Exchange Rate Rises as Pharmacies are Set to Offer Coronavirus Vaccine

The Pound to Swedish Krona (GBP/SEK) exchange rate rose by 0.4% today, with the pairing currently trading around 11.166kr.

Sterling rose against the Swedish Krona today following news that High Street pharmacies will begin offering shots of the Oxford/AstraZeneca Covid-19 vaccine as of next week.

Robbie Turner, the director of the pharmacy at the Royal Pharmaceutical Society, commented:

‘We are going to see pharmacies playing a really big role in vaccination. The numbers of shots that can be delivered will be significant compared with the total number being delivered from sites that are already in operation.’

As a result, GBP investors are confident that a rollout of the coronavirus vaccine could offer a lifeline for the British economy in the months ahead.

UK markets are remaining cautious as the scale of the UK’s crisis was laid bare, with 1,041 deaths being recorded within 24-hours.

In UK economic news, today saw the release of the final Construction PMI for December, which fell below forecasts to 54.6.

Tim Moore, the Economics Director at IHS Markit, was notably upbeat about the state of the UK’s construction sector, however, saying:

‘December data illustrated a positive end to the year for the UK construction sector, mostly fuelled by a sharp rebound in house building. Overall output growth has slowed in comparison to the catch-up phase last summer, but now it is encouraging to see the recovery driven by new projects and stronger underlying demand.’

Swedish Krona (SEK) Falls as Sweden’s Covid-19 Cases Soar

The Swedish Krona (SEK) struggled today as the number of Swedish Covid-19 cases continues to soar. This has dampening confidence in Sweden’s economic recovery going forward.

Sweden’s health agency statistics said that the nation had recorded 32,360 new coronavirus cases since its last update on December 30th.

Channel News Asia commented:

‘The health agency has said statistics over the Christmas period are less reliable than usual because fewer tests are carried out and due to delays in reporting of deaths.

‘Sweden’s death rate per capita is several times higher than that of its Nordic neighbours’ but lower than several other European countries that opted for lockdowns.’

As Sweden grapples with the surge in Covid-19 numbers, the SEK/GBP exchange rate is likely to become more subdued if the numbers continue to increase.

GBP/SEK Outlook: Could Fears of an Extended UK Lockdown Drag Down Sterling This Week?

Swedish Krona investors will be awaiting tomorrow’s release of the latest Swedish New Orders Manufacturing data for November.

Any signs of an uptick in Sweden’s manufacturing sector would be SEK-positive.

Tomorrow will also see the release of the Swedish Industrial Production Value for November.

If this shows signs of improvement, we could see the Swedish Krona head higher.

The GBP/SEK exchange rate could begin to sink, if it looks increasingly likely that the UK nationwide lockdown could be extended beyond February.