Pound to Swedish Krona Exchange Rate Struggles despite Sweden’s Coronavirus Worries
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate is sliding today, as markets react to weekend developments in the coronavirus pandemic. With the second wave hitting the UK and Sweden hard, both nations are introducing fresh measures to tackle it.
After opening last week at the level of 11.41, GBP/SEK spent most of the week climbing. GBP/SEK ultimately closed the week at the level of 11.52.
However, after a brief jump to a monthly high of 11.57 this morning, GBP/SEK has been sliding again. At the time of writing, GBP/SEK is trending lower in the region of 11.49.
Surprise at the UK government’s U-turn on coronavirus lockdowns is pushing the Sterling outlook lower. However, the Pound outlook remains resilient despite this, amid continued hopes that a Brexit deal could be mere weeks away.
Pound (GBP) Exchange Rates Hit as UK Government Announces Fresh Pandemic Restrictions
After weeks of resisting more strict national restrictions while UK coronavirus cases surged, the UK government changed course and announced bigger restrictions over the weekend.
The UK government announced that while schools would remain open, Britain would see restrictions similar to the first lockdown within the coming week.
It has been seen by analysts as being a second lockdown in all but name. This has been causing losses in UK stocks and the Pound today.
Today’s UK manufacturing PMI was a little better than forecast. However, this ultimately didn’t do much to help the Pound avoid losses against the Swedish Krona (SEK)
Swedish Krona (SEK) Exchange Rates Under Pressure as Sweden Introduces Restrictions
The Swedish Krona has been hit over the past week by Sweden’s own rapidly worsening coronavirus situation.
Sweden was unique in that it largely avoided a coronavirus lockdown earlier in the year, when most major economies were thrust into lockdown. This meant that Sweden’s economy continued to perform strongly.
However, amid the second wave of infections in the Eurozone, the pandemic has finally begun to hit Sweden harder. This has led to the introduction of stricter advice for five key regions, including the capital of Stockholm.
According to Eva Melander, Doctor in charge of infectious diseases in Skane:
‘It’s a very worrying development. We are in a completely different situation from what we were in only a week ago.. Now we need to slam on the emergency brakes to stop this development.’
Pound to Swedish Krona (GBP/SEK) Exchange Rate Outlook to be JIttery
With major coronavirus and political developments expected this week, as well as key UK and Swedish ecostats due, it could be a big week for the Pound to Swedish Krona exchange rate outlook.
Tuesday will kick off a big week with the US 2020 Presidential Election. The chances of the election result being contested or a delay in results is keeping markets highly anxious about political stability. This could cause jittery markets.
UK and Swedish services PMI data from October will follow on Wednesday. However, focus on coronavirus and US election developments could overshadow these stats, especially amid concerns that both economies will worsen in Q4.
Concerns about how the coronavirus pandemic will hurt UK and Sweden economies in Q4 may also overshadow Thursday’s Swedish growth rate report.
However, the Pound could weaken on Thursday if the Bank of England (BoE) takes a more dovish shift on its UK outlook due to the coronavirus pandemic.
Overall, the next few sessions are likely to be pivotal for the Pound to Swedish Krona (GBP/SEK) exchange rate, and market outlooks as a whole.