GBP/SEK: Swedish Krona Gains vs Pound For 6th Straight Session

The Swedish Krona is pushing higher versus the pound in early trade on Wednesday, extending gains from the previous five sessions. On Tuesday the Pound (GBP) Swedish Krona (SEK) exchange rate declined 0.3% to close at 12.1267, approximately in the middle of the trading range for the day.

At 06:30 UTC, GBP/SEK was trading down 0.1% at 12.1152, the Swedish Krona’s sixth straight session of gains.

GBP Struggles As Level 4 Incident Risk

The pound remains under pressure after the Bank of England pledged to take whatever steps necessary to shore up the UK economy in the face of coronavirus risks to the economy. The pledge came a day before the US Federal Reserve slashed rates by 50 basis points and as the UK National Health Service ups its risk in the UK to a level 4 incident, the highest degree of emergency. 12 more people in Britain have been diagnosed with coronavirus, whilst accountancy firm Deloitte’s locked down its London office following a positive coronavirus test on a worker.

The focus this week has been on central bank action and coronavirus, UK economic data has been shrugged off. Yesterday the pound dropped despite UK construction output expanding at the fastest pace in over a year in February. Today the dominant service sector PMI could attract some attention. Analysts are predicting a slight slowdown in the rate of expansion to 53.2 in February, down from 53.3 in January.

Swedish Service Sector Expected To Expand

The Swedish service sector will be in focus in early trade today. Investors are expecting activity in Sweden’s service sector to expand at a slightly slower rate in February, at 52.1, compared to 52.5 in January. This comes after service sector output jumped out of contraction in January, with the first expansion in the sector since August last year.

The service sector figures will come after upbeat manufacturing pmi data earlier this week. The manufacturing output index increased to 53 in February, up from 52 in the previous month. This was the second straight month of expansion in the sector and the strongest reading in 14 months.

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