GBP/SEK Exchange Rate Falls as Swedish Retail Figures Exceed Expectations
The Pound Swedish Krona (GBP/SEK) exchange rate is down today and is currently trading around 12.2524Kr on the inter-bank market.
The Swedish Krona (SEK) rose against the Pound (GBP) following the publication of the Swedish retail sales figures for March, which exceeded the expected 0.2% and increased to 0.5%.
Year-on-year sales, however, slipped below the consensus of a 2.8% increase to 1.9%.
Today also saw the release of the Swedish Produce Price Index figures for March, which rose to 1.2%, providing some much needed support for the Swedish Krona today after yesterday’s performance.
This came after Sweden’s Riksbank signalled that it would potentially delay a rate hike until the end of 2019 or the beginning of 2020.
The Pound, meanwhile, fell against the Swedish Krona after the Labour party’s campaign material for the European election failed to mention the possibility of a second referendum on Brexit.
Many Sterling traders have put hopes on a second referendum as this provides an alternative to a no-deal Brexit.
GBP/SEK Exchange Rate Sinks as Brexit Uncertainty Drags On
Today saw the publication of the UK mortgage approvals figures for March, which rose to 39.980K.
Brexit, however, is in key focus for most Pound investors today as there are few other notable UK economic data releases of note until next week.
Meanwhile Jeremy Hunt, the Foreign Secretary, has argued in favour of a no-deal over a no Brexit at all.
Mr Hunt said:
‘As far as Brexit is concerned, my view is very straightforward. We have to leave, leave quickly and leave cleanly.’
‘If there was a choice between no deal or no Brexit I would choose no deal because I think the democratic risk of no Brexit ultimately is higher than the economic risk of no deal.’
Today also saw controversy within the Conservative party following a leak from Tuesday’s National Security Council (NSC) which indicated that the Chinese tech-giant, Huawei, was to help the UK build a 5G phone network.
This has caused increasing tensions within the party as Theresa May’s Government shows signs of crumbling internal confidence, and weighing on market confidence in the Pound.
GBP/SEK Forecast: Pound Could Rise if May Gains Backing for her Brexit Deal
Swedish Krona traders will be looking ahead to Monday’s publication of the Swedish trade balance figures for March.
Pound investors, meanwhile, will be looking further ahead to Tuesday’s printing of the UK’s GfK consumer confidence figures for April, which are expected to sink.
The Pound Swedish Krona (GBP/SEK) exchange rate will be driven by political developments next week, and with any signs of Theresa May able to rally cross-party support for her Brexit deal, this could prove beneficial for the struggling Sterling.