Pound Swedish Krona Exchange Rate Avoids Losses despite Strong Swedish Data
Despite stronger than expected Swedish data today, the Pound Swedish Krona (GBP/SEK) exchange rate continued to trend with an upside bias, avoiding a slip back towards the week’s opening levels. Today’s UK data has helped the Pound’s (GBP) resilience.
Due to Pound strength and Swedish Krona (SEK) weakness, GBP/SEK has seen huge gains over the past week. Last week saw GBP/SEK climb from the level of 11.35 to 11.45 throughout the week.
Since markets opened on Monday, GBP/SEK continues to climb with an upside bias. Yesterday, GBP/SEK touched on a high of 11.54 – the best level for the pair in almost 4 months, since the beginning of October.
While GBP/SEK has been unable to hold those best levels, the pair still trends high in the region of 11.49 at the time of writing.
Pound (GBP) Exchange Rates Resilient after UK Services PMI Beats Forecasts
Investors have been finding the Pound broadly appealing in recent weeks.
It is largely due to rising speculation that Britain’s coronavirus vaccination programmes are ahead of other major economies, which could help Britain’s economy to recover from the pandemic before some other major economies do.
This has continued to support the Pound this week, but the British currency has also found support from UK PMI data. This week’s UK January PMIs from Markit beat forecasts, including the PMI for Britain’s key services sector.
The data ultimately indicated to investors that Britain’s economy has been more resilient during the latest national lockdown than expected.
Swedish Krona (SEK) Exchange Rates Fail to Recover despite Stronger Data
Today also saw the publication of Sweden’s own January services PMI report. As with Britain’s, the services PMI came in better than expected.
Sweden’s services PMI actually showed a surprisingly strong figure of 59.3, well above the expected figure of around 54.
It follows data from earlier in the week showing that Sweden avoided economic contraction in the last quarter of 2020.
Despite this though, the Swedish Krona remains generally unappealing. Investors have been selling the Krona sharply from recent highs, ever since the Riksbank announced it was shifting its stances on foreign reserves.
Pound Swedish Krona (GBP/SEK) Exchange Rate Outlook Awaits Bank of England (BoE)
The Pound to Swedish Krona exchange rate continues to trend with an upside bias, but upcoming news could cause the pair to shed some ground.
Thursday could be one of the most influential sessions of the week for Pound investors, as the Bank of England (BoE) will hold its February policy decision.
If the BoE takes a more dovish stance than expected on Britain’s coronavirus situation, much of the Pound’s recent appeal could soften. This could cause GBP/SEK to trend with a more bearish bias toward the end of the week.
Of course, it’s also possible that a relatively optimistic BoE could cause the Pound to become more appealing and boost GBP/SEK higher.
Swedish Krona investors will be reacting to domestic developments, as well as awaiting Friday’s Swedish industrial production results from December.
Overall, Bank of England and coronavirus news are likely to drive the Pound Swedish Krona (GBP/SEK) exchange rate for the remainder of the week.