GBP/SEK: Krona Tumbles as Pound Soars to 7-Month High

Swedish Krona continues to tumble against the Pound for 3 consecutive days as Sterling soars to 7-months high. At the end of the Thursday trading session, Krona settled at 12.4872 down -0.23% against the Pound.

Thursday’s trading session saw GBP/SEK within the range of 12.4530 -12.4963. However, during the early Asia trading hours, the GBP/SEK exchange rate was seen stabilize around yesterday’s closing price.

The main factor driving the broad-based Pound strength, and subsequently SEK weakness, is the uplift Brexit optimism ahead of the 12 December general election day. Against the greenback, the British Pound has broken into levels not seen since the beginning of May 2019.

The euro area final reading of its Q3 GDP figures came in line with the market expectation at 0.2% versus 0.2% previous reading. The Euro GDP growth was curbed by regional slowdown and trade war tensions.

Currency traders are turning nervous with only one week to go until the UK general election. This has the potential to motivate large whipsaws in the foreign exchange market. All polls agree that the Conservatives will gain a majority in the UK parliament. The result should clear the path for a Brexit deal.

Riksbank’s policy member Martin Floden told reporters on Thursday, “if inflation surprises on the downside” it will make it more difficult for Sweden’s central bank to achieve its 2% inflation target. The Deputy Governor added that while the inflation gained momentum in recent years, it’s still “shaky”. Sweden’s inflation data is scheduled to be released next week.

The Riksbank is scheduled to announce its interest rate policy on 19 December. Sweden’s central bank is expected to put an end to the negative interest rate policy NIRP.

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.