Pound to Swedish Krona Exchange Rate Avoiding Bigger Losses amid Brexit Hopes
Optimism around Sweden’s economic resilience continues to boost the Swedish Krona (SEK), keeping the Pound to Swedish Krona (GBP/SEK) exchange rate under pressure. The Pound (GBP) is avoiding bigger losses due to Brexit deal hopes.
Since opening this week at the level of 11.45, GBP/SEK has been trending with a downside bias. The Swedish Krona’s resilience is preventing further gains, but GBP/SEK has been able to hold onto most of last week’s advances.
GBP/SEK is currently trending modestly below the week’s opening levels, in the region of 11.43. The Pound is attempting to advance, but the Krona’s resilience is preventing losses.
Looking ahead, any optimistic Brexit news could prove to be the boost the Pound needs to push the Pound to Swedish Krona exchange rate outlook higher.
Pound (GBP) Exchange Rates Attempt Gains on Brexit Hopes
The Pound is attempting to hold its ground against the strong Swedish Krona this week, amid hopes that the UK and EU are on the cusp of reaching a Brexit deal.
UK and EU officials continue to signal optimism over the possibility of a deal being reached soon. This is keeping Pound investors optimistic, and is helping Sterling to avoid further losses.
However, concerns about Britain’s coronavirus pandemic outlook are limiting the Pound’s appeal. Even if a Brexit deal is made, there are fears that many businesses could be on the brink of collapse.
The latest industrial trends orders report from the Confederation of British Industry (CBI) came in worse than forecast.
Swedish Krona (SEK) Exchange Rates Remain Appealing on Domestic Outlook
The Swedish Krona is struggling to sustain this week’s gains against a resilient Pound, but it is still higher as the currency’s outlook remains strong.
Investors have been finding the Swedish Krona appealing this year, as Sweden has largely avoided coronavirus lockdown measures.
Swedish data continues to impress investors as a result, showing the economy is continuing to perform well amid the pandemic. Today’s Swedish unemployment rate report came in with a better-than-expected figure of 7.8%.
However, as coronavirus cases surge in Sweden, the nation has been considering more restrictions. This means there is a lot of downside risk in the Swedish Krona outlook.
Pound to Swedish Krona (GBP/SEK) Exchange Rate Outlook Could Strengthen on Brexit News
While there was no Brexit deal reached this week, markets are still hopeful that a deal could be just around the corner. Hopes for a deal to be announced some time early next week are keeping the Pound buoyant.
If the UK and EU remain optimistic about a deal, the Pound is more likely to hold its ground and avoid further losses.
If there is progress or announcement on a deal in the coming sessions, the Pound could recover losses against the Swedish Krona.
Appeal for the Pound could be boosted even further if tomorrow’s UK retail sales results impress investors.
However, there is a big downside risk for the Pound as well, if Brexit negotiations take a turn for the worse. No-deal Brexit fears could cause Sterling to slump.
The Swedish Krona will likely remain fairly appealing for the time being, but there is downside risk in the Krona too.
If Sweden’s coronavirus situation worsens then the Swedish Krona could lose much of its appeal and the Pound to Swedish Krona exchange rate could recover.