The Swedish Krona is trading flat in early trade on Wednesday after snapping a four-session winning run in the previous session, closing -0.4% lower against the pound.

The GBP/SEK exchange rate traded within a familiar range of 12.5712 – 12.6780, before settling at 12.6263.

Looking ahead Brexit and coronavirus could create some volatility in the pair, whilst Thursday and Friday see a slew of Swedish data due to be released.

Brexit To Limit Upside

The pound was in recovery mode on “turn-around Tuesday”. Sterling trended higher, recouping Monday’s losses after encouraging data. Data from the Confederation of British Industry (CBI) showed that retail sales crept up in February in its best performance since April. The CBI monthly gauge hit 1 in February, up from 0 in January. This was below analysts’ expectations of 4. However, investors were willing to turn a blind eye, instead cheering that the survey also pointed to an uptick in investment later this year.

Business investment has been particularly weak amid lingering Brexit uncertainty. However, the data was in line with comments from Bank of England chief economist Andy Haldane, who said that he saw signs of “stirring in the undergrowth” regarding firms’ capital spending plans.

Despite the encouraging signs in the economy, any pound gains could well be capped as investors focus on post Brexit trade talks which are due to start next week. EU Ministers approved their mandate for the trade talks. UK ministers have also agreed the UK mandate which will be published on Thursday.

Coronavirus Spread Weighs On Swedish Krona

The Swedish Krona was on the back foot in the previous session as coronavirus fears remained. With the focus now shifting off China and towards Italy and Europe analysts have started questioning the Swedish Krona’s ability to remain firm. Seen as a barometer of risk confidence the Swedish Krona could be one of the hardest hit currencies should the spread of coronavirus pick up across Europe.

Sweden’s fundamentals will be in focus on the last two days of this week. Whilst there is no economic data due today, tomorrow sees the release of business and consumer confidence, retail sales, balance of trade and consumer inflation. Analysts are expecting to see a slightly softer data compared to last month. For example, inflation is due to tick lower to 3.3% in February, down from 3.4% and retail sales are expected to decline -0.7% month on month compared to a 0.5% increase in January. Weaker data could drag on demand for the Swedish Krona. 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.