GBP/SEK: Krona Posts Losses for 3 Consecutive Days

Sweden’s Krona has been weakening against the Pound for three consecutive days, erasing most of its weekly gains. At the foreign exchange market, the GBP/SEK exchange rate settled up 0.60% at 12.4102, but the pair was seen quoted on Thursday within a trading range of 12.3298 and 12.4165.

The Scandinavian currency continues to trade heavy extending the previous session losses following a report released by the Sweden Finance Ministry on Thursday. According to the Sweden’s Minister of Finance Magdalena Andersson, the domestic economy is expected to grow at a slower pace compared to 2019.

Sweden’s economy is expected to moderately grow by 1.1% versus the 1.4% previously forecast. The same report revealed growth to pick up in 2021 at 1.6%. According to the same report Sweden’s government forecast a return to negative interest rates. The Riksbank ended the negative interest rate policy at its December meeting. The SEK came under pressure following the downbeat economic forecasts.

“The slowdown in the world economy we have previously seen is becoming increasingly clear in the Swedish economy,” said Sweden’s Minister of Finance Magdalena Andersson during a press conference.

In the third quarter of 2019, the Gross Domestic Product (GDP) in Sweden grew by 1.7% following a growth of 1.0% in the second quarter.

In other news, the British Pound continued to be well-supported on the currency market despite weak inflation data, which boosted bets of a rate cut at the next BoE meeting.

Looking forward over the economic calendar, in the UK the Retail Sales are expected to rebound after fourth consecutive months of sharp decline. According to the market consensus the year-on-year growth rate in Retail Sales is expected to come higher at 2.6% compared to 1.0% previous reading. At the same time, Retail Sales during December are expected to be boosted due to the holiday season and print 0.7% increase versus the -0.6% November reading.

On the technical front, the GBP to SEK exchange rate has climbed near the weekly opening rate. The pair’s performance over the past 3 days looks solid and it’s on track to consolidate its gains as we’re approaching the end of the trading week.
GBP/SEK was up 0.01% to 12.4113 in the late Asian session on Friday.

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