GBP/SEK: Swedish Krona Gains Traction As Labour Market Strengthens

  • GBP/SEK settled at 12.4503 last week
  • On Monday, pair opened near the Friday close
  • Sweden’s unemployment rate dropped to 6.6% seasonally adjusted (Statistics Sweden data)

Sweden’s Krona is gaining traction as the labour market strengthens according to the October’s reading. On the interbank market, during last week’s trading activity, Krona settled at 12.4503, not before reaching a high of 12.5425. The GBP/SEK exchange rate opened unchanged near the close we left it on Friday. During the early Asia trading hours the GBP/SEK exchange rate was seen quoted higher at 12.4628.

According to Statistics Sweden (SCB) data, Sweden’s unemployment rate dropped to 6.6% seasonally adjusted from 7.4%. This can impact the next reading on GDP, which is scheduled on 29 November.

Swedish government kept the foreign exchange exposure unaltered. It ruled a systematic reduction of the foreign exchange exposure starting from the beginning of 2015. Over the past few years the government managed to reduce by 50% the foreign currency debt. From SEK 200 billion to SEK 100 billion from.

Looking ahead over the economic calendar, there are no major macro catalysts that can disrupt the market volatility. The only notable risk event is the release of the Bank of England’s (BoE) Inflation Report Hearings. This is scheduled on Wednesday 20 November.

UK inflation has fallen to the lowest level in about three years, also due to low prices in the energy sector. According to the Office for National Statistics (ONS), inflation measured by the CPI data rose only 1.5%. This was versus 1.7% prior reading.

Other sources for distorting the currency exchange rate can come from the UK election campaign. If the new polls will reveal that the Tory Party will lose power, investors might dump the Pound. This will provide an opportunity for the Swedish Krona to rise on the back of Pound weakness.


Currencylive.com is a news site only and not a currency trading platform.
Currencylive.com is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.