Swedish Krona stretched to the downside against the Pound and collapsed to a fresh five-week low. At the foreign exchange market, the GBP/SEK exchange rate settled up 0.40% at 12.4841, but the pair was seen quoted on Wednesday within a trading range of 12.4060 and 12.5228.
The GBP to SEK pair rallied to new highs for 2020 more due to Pound strength rather than SEK weakness. The Pound currency rate was boosted by the booming UK job market. According to the latest figures from the Office for National Statistics in the UK, the employment rate hit a new high of 76.3%. At the same time, the unemployment rate holds steady at 3.8%, its lowest level since 1974.
The employment data showed a record 32.9 million people enrolled in the labour market, up 0.5% from the previous reading.
“The employment rate is at a new record high, with over two-thirds of the growth in people in work in the last year coming from women working full-time,” said ONS head of labour market and households, David Freeman.
In Sweden, currency traders await for the Unemployment rate and Prospera inflation survey, which have the potential to disrupt the market volatility. According to the previous Prospera inflation reading the 5-year inflation stood at 1.8% close to the central bank 2.0% inflation target. At the same time, the 12-month inflation stood at 1.6%.
Meanwhile, the unemployment rate is forecast to inch lower to 6.7% versus 6.8% previous reading. According to the IMF outlook, the unemployment rate in Sweden is expected to stabilize within a 0.4% ban for the next four years.
In other news, the Brexit deal has overcome another hurdle after the House of Commons overwhelmingly voted to reverse the amendments made by the House of Lords. The UK has only 8 days left until the official departure date – 31 January
From a technical perspective, the GBP to SEK surged to new 2020 highs and it’s threatening to challenge again the 2019 high established on 13 December at 12.6263.
GBP/SEK was down -0.03% to 12.4807 in the late Asian session on Thursday.
