The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate rallied to a 3-day high on Thursday as concerns over the Scottish Referendum eased and as the Krona was weakened by concerns over the approaching general election.
A poll released on Wednesday night showed that support for the pro Union No campaign gained, easing concerns that next week’s referendum vote will result in the breakup of the United Kingdom. Support for staying together was bolstered and is likely to continue to improve as the silent majority begin to let their views be heard.
‘You’ve heard a lot what I call arguments of the head, but it’s also important we make arguments of the heart. I would be heartbroken if this family of nations was torn apart. Do not for one second think the rest of the UK is indifferent. These islands are our home,’ said Prime Minister David Cameron in an impassioned speech.
The Swedish Krona meanwhile was weighed upon by growing uncertainty ahead of Sunday’s general election.
A report released earlier in the session showed that unemployment in the Scandinavian nation dropped from 8.5% to 7.8% on a year on year basis. According to Statistics from Sweden’s Employment Agency, 371,000 people were out of work last month.
The figures also suggest that more jobs are being advertised. There were 59,000 vacancies in Sweden last month, up nearly 8,000 from August 2014.
‘Unemployment continues to fall in all groups, but especially among young people,’ said Mats Wadman, an analysis manager for the Employment Agency.
Despite the positive jobs data the Krona declined. Economists are concerned that the government, which has done well as it, guided Sweden through tough economic times looks set to lose Sunday’s election.
The jobs data could provide a boost, but nerves remain.
Under Prime Minister Fredrik Reinfeldt, the nation has enjoyed a robust and dynamic job market, sustained growth and low public debt. However, despite the country’s economic success, opinion polls put the Social Democrat-led opposition narrowly ahead of the governing Alliance.
Under Reinfeldts leadership, Sweden managed to overtake Denmark as the EU nation with the best employment rate figures. The number of 20 to 64 year olds in work stands at 79.4%.
Surveys are suggesting that voters are veering towards the centre-left following concerns that standards are slipping in Sweden’s schools and hospitals and worries about a growing income gap in the country.
Pound Sterling to Swedish Krona exchange rate forecast
The GBP/SEK exchange rate is forecast to experience volatility going into the weekend as uncertainty over the outcome of Sunday’s Swedish General Election and next week’s Scottish Independence Referendum weigh.
Signs that the Pro-Independence Yes campaign is gaining support will likely see the Pound retrace Thursday’s rally. The currency is likely to seesaw all the way up until the vote on September 18.
Pound (GBP) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,Swedish Krona,1.6254 ,
Euro,,Swedish Krona,1.2568 ,
US Dollar,,Swedish krona,1.6254 ,
[/table]
