GBP/SEK Exchange Rate Falls on Upbeat Swedish Retail Sales Data
The Pound Swedish Krona (GBP/SEK) exchange rate dipped today, the pairing is currently fluctuating around 11.61kr.
The Swedish Krona (SEK) rose following today’s release of the latest Swedish retail sales report for March. The figure rose by 2.6% month-on-month- and 9.1% year-on-year.
As a result, the Swedish Krona has benefited from an improved outlook for the nation’s retail sector.
However, some SEK investors have remained cautious after Sweden’s central bank kept monetary unchanged yesterday.
The Riksbank Governor Stefan Ingves commented:
‘We consider it is much too early and risky to change the direction of monetary policy. If we were to be wrong, we would be faced with a steep hill to climb and we would have to start from the beginning again.’
Covid-19 vaccination programmes have struggled throughout Europe and Sweden leaving many Swedish Krona traders cautious about the outlook for the nation’s economy.
Pound (GBP) Exchange Rate Dips Despite Upbeat Outlook for UK Economy
The Pound (GBP) struggled against the Swedish Krona today despite the Confederation of British Industry (CBI) recording the sharpest growth in retail sales since 2018.
Fraser McKevitt, head of retail at Kantar commented:
‘There is a growing sense that the worst of the pandemic is behind us, and people are becoming more comfortable with venturing out to the supermarket. The past four weeks have been the busiest in store for the grocers in more than a year.’
Consequently, GBP investors are becoming increasingly optimistic about the outlook for the UK’s retail sector now that non-essential shops have reopened.
May will also see further lockdown restrictions eased. This has further buoyed optimism for the nation’s economy in the coming months.
Added to this, HSBC has reported a significant up-tick in growth thanks largely to the improved outlook for the UK economy.
HSBC chief executive Noel Quinn said:
‘We are more optimistic than we were back in February, we expect GDP to rebound in every economy in which we operate this year.’
Pound Swedish Krona Exchange Rate Forecast: Could Upbeat Swedish Consumer Confidence Boost SEK?
Swedish Krona (SEK) investors will be eyeing tomorrow’s publication of the latest Swedish consumer confidence gauge for April.
Any improvement in Sweden’s consumer morale would further drive up the Swedish Krona Pound exchange rate.
Pound (GBP) traders will continue to monitor the outlook for the UK economy this week.
However, with confidence growing in the British economy as Covid-19 cases remain low and further easing of lockdown restrictions due in May, Sterling could begin to head higher.