Pound Swedish Krona Exchange Rate Sheds Half of This Week’s Gains
Investors have been selling the Pound Swedish Krona (GBP/SEK) exchange rate since it hit its best levels in half a year earlier in the week. Investors are hesitant to keep buying the Pound (GBP) even higher, but it remains broadly appealing on coronavirus recovery hopes.
Since opening this week at the interbank level of 11.60, GBP/SEK has been trending with an upside bias. In the middle of the week, GBP/SEK touched on a high of 11.74 – which was the best level for the pair since June 2020.
Since touching that high, GBP/SEK has been falling back. GBP/SEK has shed over half of the week’s gains and at the time of writing trends near the interbank level of 11.65.
A slew of key Swedish ecostats will be published tomorrow, which could give the Swedish Krona (SEK) a more solid boost before markets close for the week.
Pound (GBP) Exchange Rates Slip from Highs but Outlook Remains Strong
The Pound has been one of the most consistently appealing major currencies on markets in recent weeks.
Optimism that Britain will be one of the first major economies to recover from the coronavirus pandemic and return to normalcy has dominated forex markets, leading the Pound to rocket.
Yesterday, Sterling hit its best levels in many months against many major currencies, including the Swedish Krona.
However, markets are taking a breather on Sterling today, selling it slightly from its best levels on profit-taking.
Sterling remains appealing overall though, so its losses are limited for now.
Swedish Krona (SEK) Exchange Rates Rebound despite Riksbank Dovishness
The Swedish Krona was able to benefit from the Pound’s dip today, and GBP/SEK slipped lower.
Market demand for the Swedish Krona was supported by today’s Swedish confidence data. Swedish business and consumer confidence were both better than expected in February.
With confidence above expectations, a slightly underwhelming consumer inflation expectations report had little impact on the Swedish Krona.
The Swedish Krona advanced despite recent dovish comments from Riksbank officials.
According to Riksbank Deputy Governor Anna Breman, the bank shouldn’t rule out monetary policy tools such as negative interest rates or even helicopter money. She said:
‘Current monetary policy is not necessarily appropriate in a changing society,
We need to be open to innovation and new thinking.’
Pound Swedish Krona (GBP/SEK) Exchange Rate Awaits Slew of Swedish Data
The Pound to Swedish Krona exchange rate is sliding as investors pull back on the Pound, but the Swedish Krona’s appeal is still mixed. That could change if tomorrow’s Swedish data impresses markets.
Tomorrow will see the publication of a slew of key Swedish ecostats.
Not only will Sweden’s final Q4 2020 growth rate report be published, but retail sales and trade balance results from January are due as well.
If the data beats expectations, it could boost hopes that Sweden’s economy is weathering the coronavirus pandemic. This could lead to stronger demand for the Swedish Krona.
However, weaker data, combined with a resumed Pound rally, could mean the Pound Swedish Krona (GBP/SEK) exchange rate ends the week closer to its best levels instead.