The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate managed to eke out a modest gain of 0.15% on Tuesday in spite of the Pound being broadly softer.
Sterling slid to within touching distance of a nine-week low against the US Dollar and lost ground against several of its other main currency counterparts during Tuesday’s European session as investors exhibited caution ahead of tomorrow’s Bank of England Inflation report and the UK’s employment figures.
The news that the British Retail Consortium’s Like-for-Like Retail Sales measure declined unexpectedly in July also weighed on the British asset.
The -0.3% year-on-year decline wiped out hopes for a 0.9% increase and saw forex strategist Jeremy Stretch comment; ‘The retail sector is not looking quite as robust as it was earlier in the summer and as a consequence of that, that will keep Sterling a little bit on the defensive. We’ve got markets increasingly focusing on the quarterly Inflation Report as well but I think there’s still a risk that Sterling has a little more downside to come in the shorter term’.
However, the Pound managed to retain the upper hand against the Swedish Krona as the European asset was pressured by domestic inflation figures.
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate hit a high of 11.5587 before returning to trade in the region of 11.5499.
Although the pace of inflation fell by slightly less than forecast in July, sliding by 0.3% on the month rather than the 0.4% forecast, the data still adds to the case for the Swedish central bank cutting interest rates in the near future.
The result prompted this response from HSBC analyst James Pomeroy; ‘The continued weak data suggests that the struggle to move inflation back towards the Riksbank’s 2% target continues. Weak activity data, with hardly any growth in the first half of the year, and slipping industrial production numbers suggest that inflation will likely remain low for the foreseeable future.’
The Euro to Swedish Krona (EUR/SEK) exchange rate eased lower during the local session as the common currency weakened in response to less than impressive ZEW economic sentiment surveys for the Eurozone and Germany.
The Euro to Swedish Krona exchange rate hit a low of 9.1857.
Pound Sterling to Swedish Krona (GBP/SEK) Forecast
Tomorrow any volatility in the Pound Sterling to Swedish Krona (GBP/SEK) exchange rate is likely to be caused by the UK’s employment figures and the Bank of England’s employment report.
As the week continues the GBP/SEK pairing could be affected by the UK’s second quarter GDP data.
Quarterly growth of 0.8% has been forecast. If the figure meets or exceeds expectations the Pound could close out the week in a stronger position.
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate is currently trading in the region of 11.5501.
GBP/SEK Weakens after Faltering Average Weekly Wage Data
The Pound Sterling to Swedish Krona (GBP/SEK) is currently trending around 11.5099.
Expect the Pound to soften against many currencies today having been marred by less-than-impressive domestic data results.
The ILO Unemployment Rate recorded a result which remained faithful to forecast figures. The positive result does not stand alone, however, when considerations for UK Average Weekly Earnings are taken into account.
UK Average Weekly Earnings showed a declination from the forecast figure of -0.1% to -0.2%. The miscorrelation between that of unemployment and weekly earnings spells disaster for those speculating on a BoE rate hike ahead of today’s Bank of England Inflation Report.
The Swedish Krona is likely to maintain its current standings with no domestic data due for release today. Look for Thursday to shake things up with the important year-on-year Inflation Rate data which is forecast to rise from 0.9% to 1.19%.
Swedish Krona (SEK) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
, Swedish Krona,11.5457,
Euro,, Swedish Krona,9.1863,
US Dollar,, Swedish Krona, 6.8842,
Australian Dollar,, Swedish Krona, 6.3959,
New Zealand Dollar,, Swedish Krona,5.8360,
Canadian Dollar,, Swedish Krona,6.2884,
[/table]
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