GBP/SEK: Krona Rises from Inflation Boost, UK Election Day Eyed

Swedish Krona rises to a 5-day high against the Pound following a better-than-expected reading on Sweden inflation. During yesterday’s trading session, the GBP/SEK exchange rate settled at 12.3908 registering a -0.62% loss. But not before touching an intraday low of 12.3820.

Tuesday’s trading session saw the GBP/SEK within the range of 12.4869 -12.3820l However, during the early Asia trading hours, the GBP/SEK exchange rate was seen stabilizing at 12.4653 level. Currency traders brace for the UK election day.

In Sweden, inflation rose marginally higher in November and consequently the Scandinavian currency appreciated on the interbank market. The annual pace of inflation came in line with Sweden’s central bank forecast at 1.7% versus 1.6%, market consensus. At the same time consumer prices rose 0.1% in November the data showed on Wednesday.

The inflation reading followed the Prospera inflation survey, which was published early this week. This showed the 5-year inflation and 12-month inflation at 1.8% respectively at 1.6%.

With inflation close to Riksbank’s 2% inflation target, the central bank is likely to carry on with its ambitions to hike rates at its policy meeting next week. This will also put an end to the negative interest rate policy that governed the central bank’s policy for the past five years.

Against the euro, Swedish Krona rallied to an 8-month high taking advantage of the bullish momentum built up in the past few weeks.

From the other side of the monetary policy spectrum, GBP traders are still digesting the latest YouGov poll which revealed Tory’s lead shrinking to 9 points against the Labour Party. The Election Day will keep the Pound cross on the edge as more volatility is expected once the UK election outcome will be known to the market. is a news site only and not a currency trading platform. 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 do not represent our views.