GBP/SEK Exchange Rate Rallies as Swedish Consumer Confidence and Retail Figures Slump
The Pound Sterling Swedish Krona (GBB/SEK) exchange rate has rallied over the course of the morning currently trading at interbank rates of 11.6231kr, as Swedish consumer confidence figures showed a drop.
The figures released by the National Institute of Economic Research showed a worse-than-expected drop from 98.5 to 97.5 despite a predicted growth to 99.0, which allowed the Pound to push back against the Krona.
Swedish retail sales figures also released this morning have shown a marked contraction for October, with figures dropping from 0.5% to -1.1%, despite a predicted fall to only 0.2%.
On a yearly basis the figures plummeted from 2.1% to -0.1%.
Meanwhile, the release of the British Retail Consortium shop price index showed growth from -0.2% last November to 0.1% this November, which may have helped the Pound make some gains on the Swedish Krona.
GBP/SEK Exchange Rate Volatile amidst Brexit Uncertainties
The Pound has remained volatile during the first half of this week’s session as Brexit news continued to fuel movement in the UK currency.
Philip Hammond, Chancellor of the Exchequer, said that the UK will be worse off economically than it would be if the country had remained a part of the European Union, saying the economy will be ‘slightly smaller in the Prime Minister’s preferred version of the future partnership.’
He argued that staying in the European Union was not ‘viable’ and that the proposed deal from Theresa May combined most of the economic benefits of being in the EU with the political benefits of leaving the EU.
The Brexit uncertainties clearly played a role in the GBP/SEK exchange rates plummeting over the session yesterday, falling from 11.6465 kr to 11.5687 kr.
GBP/SEK Exchange Rate Pushes Back as Further Weak Data Released From Sweden
The GBP/SEK exchange rate rise was aided by the Swedish data releases in the session yesterday, as the producer price index for October showed a decrease from 10.1% in October 2017 to 9.5% this year perhaps indicating an inflationary slowdown in the Scandinavian economy.
The month-on-month data also showed a contraction, as the figures dropped from 1.2% to -0.3% this month, although this did not bolster the Pound massively, as Brexit related news pushed the pairing down after the release of both sets of data.
Outlook: GBP/SEK Exchange Rate Volatile as Brexit and Disappointing Swedish GDP Predictions
The Bank of England (BoE) Governor, Mark Carney is set to give a speech this afternoon, and depending on his tone, it is likely that this will cause movement in Sterling.
Gfk Consumer confidence figures released in the UK on Friday are also going to be a likely catalyst for movement for Pound exchange rates, with it being likely the GBP/SEK exchange rate may drop if consumer confidence decreases as predicted.
The release of Sweden’s latest quarterly gross domestic product (GDP) figures tomorrow is likely to cause further gains for the UK currency if the data predictions are correct, as GDP is expected to fall from to 0.3% from Q2’s 0.8% .