British Pound to Swedish Krona (GBP/SEK) Exchange Rate Drops before Confidence Stats
A huge surge in demand for the US Dollar has seen the Swedish Krona soften as trader risk sentiment weakens. A lack of data on Monday hasn’t helped curtail the Krona downfall, and continued issues with falling commodity prices have hurt the Nordic currency. The Pound, meanwhile, has been relatively quiet in comparison to previous weeks due to an absence of economic data.
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In the run up to the Scottish independence referendum Sterling experienced a huge dip in sentiment and softened considerably. Successive opinion polls showed different results which added to anxieties that the vote would be far too close to call. The detrimental effect independence would have on the Pound was too hot to handle for most investors who pulled away in droves.
Friday morning saw a victory for the Unionists and the Pound instantly regained the losses collected in the previous weeks. Sterling gains were short-lived, however, after increased demand led to attractive selling positions and traders locked in their profits.
The Swedish Krona enjoyed a surge in demand towards the tail end of last week after Gross Domestic Product data printed more positively than the market consensus. Year-on-year Gross Domestic Product was expected to show growth of 1.9% having increased by 1.7% previously, but the actual data revealed a growth of 2.6%. This was helped by the quarter-on-quarter GDP which improved upon the forecast growth of 0.3% with the actual data reaching 0.7%.
The Pound Sterling to Swedish Krona exchange rate has hit a low today of 11.6318.
With an absence of domestic data on Monday the Pound has been subject to very little volatility compared with previous weeks. A slight softening can be attributed to fresh anxieties regarding Scottish devolution. In the panic of the prospect of losing Scotland; Prime Minister David Cameron offered Scotland more power over their domestic affairs. Given that there is a great deal of uncertainty as to what effect Scottish devolution will have on Sterling it is unsurprising that many investors are shying away.
There has also been a distinct lack of economic data for Sweden on Monday. The Krona, however, has softened against the majority of its most traded currency peers as a result of the continued declination in commodity prices. Less major currencies, such as the Krona, are also subject to losses if the US Dollar makes a bullish run.
The Pound Sterling to Swedish Krona exchange rate has reached a high today of 11.6971.
After trending in a stronger position on Monday the GBP/SEK exchange rate drifted lower on Tuesday.
The British Pound to Swedish Krona exchange rate dropped by 0.4% as Sterling broadly softened amid a lack of UK news and ongoing Bank of England rate hike speculation.
While today’s UK Public Finance figures could have an influence on GBP/SEK trading, investors will also be looking ahead tomorrow and Sweden’s Business and Consumer Confidence indexes.
The gauge of business sentiment is expected to advance from 104.6 to 104.7 while the measure of consumer confidence is believed to have fallen from 96.9 to 96.6.
Surprising results could trigger fluctuations.