- 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.