Pound Sterling Swedish Krona (GBP/SEK) Exchange Rate Muted on Covid-19 Fears
The Pound Sterling Swedish Krona (GBP/SEK) exchange rate remained flat, trading at around 12.6685Kr.
At the start of the week, data showed that Swedish industrial inventories jumped by 3.3 billion SEK in Q4 2019.
The rebound followed a disappointing slump of a downwardly revised 5.5 billion SEK in the third quarter.
However, this could do little to buoy the Krona as worries about a weakening global economy weighed on the currency.
The threat of Covid-19 has worried investors and many fear the Eurozone could suffer from weak growth. This left SEK unable to make gains against Sterling.
Commenting on this, Kyosuke Suzuki, manager of currencies at Societe Generale stated:
‘Coronavirus is increasingly looking like a long-term issue and thus, at least for currency markets, it will be playing second fiddle.
‘In contrast, sentiment on the Euro is becoming clearer, with weak economic fundamentals helping to push it down.’
Pound (GBP) Flat as France Warns UK and EU to ‘Rip Each Other Apart’
Sterling was left flat on Monday, as traders continued to worry about the future of UK-EU trade relations.
Over the weekend, France warned that the UK should expect a battle with the European Union in trade negotiations.
France’s Foreign Minister, Jean-Yves Le Drian stated that the two sides would ‘rip each other apart’, weighing on GBP.
He also noted that the goal to secure a free trade deal by the end of the year would be extremely difficult.
Speaking during Sunday’s security conference, France’s Foreign Minister said:
‘I think that on trade issues and the mechanism for future relations, which we are going to start on, we are going to rip each other apart.
‘But that is part of negotiations, everyone will defend their own interests.’
Pound Swedish Krona Outlook: Will Disappointing Swedish Unemployment Weigh on SEK?
Looking ahead, the Pound (GBP) could rise against the Swedish Krona (SEK) following the release of UK labour market data.
If unemployment remains at the lowest level since early 1975, and wage growth increases more than expected, Sterling will jump.
Meanwhile, the Krona could slide if January’s Swedish unemployment rate disappoints.
If Sweden’s unemployment rate rises higher than forecast, the Pound Swedish Krona (GBP/SEK) exchange rate will rally.