In the aftermath of the release of Swedish data revealing consumer price growth, the Pound Sterling to Swedish Krona (GBP/SEK) exchange rate dived by around -0.50%. A better-than-expected result from British retail sales data has allowed the Pound to strengthen against many of its most traded currency rivals, but the Swedish inflation data overshadowed UK retail sales.
The Pound Sterling to Swedish Krona exchange rate is currently trending in the region of 11.7199.
Sterling (GBP) Gains on Retail Sales
After British retail sales data printed positively, the Pound advanced versus the US Dollar (GBP/USD), Euro (GBP/EUR) and Australian Dollar (GBP/AUD). The British Retail Consortium (BRC) Like-for-Like Sales report eclipsed the median market forecast of a rise from -2.1% to -0.5%, with the actual data advancing to the flat line figure 0.0%.
Helen Dickinson, director-general of the BRC, said: ‘Retailers’ preparations around stocking items required for Halloween celebrations such as costumes of characters from animation feature films for children, meant a significant year-on-year increase in Halloween-related sales.’
KPMG head of retail David McCorquodale said: ‘Looking at these figures, most retailers will feel they were tricked rather than treated in October. Even the most experienced of shopkeepers could not have foreseen a heat wave at Halloween and most were left with sales that were flat at best.’
The Pound Sterling to Swedish Krona exchange rate has fallen to a low today of 11.6986.
Swedish Inflation Growth sees Krona (SEK) Advance
On a monthly basis, Sweden’s Inflation Rate avoided declining as much as the median market forecast of 0.2% to 0.0%, with the actual result only falling to 0.1%. On a yearly basis, the pace of consumer price gains was forecast to rise a little from -0.4% to -0.33%, but the actual result reached -0.1%.
Pound Sterling to Swedish Krona (GBP/SEK) Exchange Rate Forecast to Recover
With a packed economic British data docket on Wednesday and a lack of data for Sweden, there is plenty of opportunity for the Pound to recover against the Krona. However, should the British data print below expectations, the GBP/SEK exchange rate could extend losses.
The Pound Sterling to Swedish Krona exchange rate has reached a high today of 11.7936.
UPDATE
GBP/SEK Exchange Rate Gradually Recovers on Profit Buying
The Pound Sterling to Swedish Krona exchange rate is currently trending in the region of 11.7480.
In the aftermath of the initial downtrend caused by better-than-expected Swedish inflationary growth, the GBP/SEK exchange rate has recovered some of its losses as traders lock in profits. The huge increase in demand for the Krona after inflation improved opened a number of attractive selling positions, and short-term investors have benefitted from profit locking.
Sterling, meanwhile, is still holding gains against most of its currency peers thanks to moderate growth in retail sales.
GBP/SEK Exchange Rate Strengthens on British Wages Forecast
The Pound Sterling to Swedish Krona exchange rate is currently trending in the region of 11.7891.
After having appreciated significantly from improved inflation data, the Swedish Krona softened on trader profit locking. With a lack of economic data to curb the downtrend on Wednesday, the Swedish asset has continued trending lower against its major peers.
Sterling, meanwhile, has fluctuated against many of its most traded rivals ahead of key labour market data due for publication later on Wednesday morning. A slight appreciation can be attributed to a forecast increase in Average Weekly Earnings, especially given that the Bank of England has targeted improved wage growth as a prerequisite for monetary policy normalisation.
Pound Sterling (GBP) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound,
,Swedish Krona,11.7300,
Pound,,US Dollar,1.5864,
Pound,,Euro,1.2773,
Pound,,New Zealand Dollar,2.0441,
Pound,,Australian Dollar,1.8379,
Swedish Krona,,Pound,0.0852,
US Dollar,,Pound,0.6302,
New Zealand Dollar,,Pound,0.4891,
Euro,,Pound,0.7827,
Australian Dollar,,Pound,0.5440,
[/table]
