GBP/SEK Exchange Rate Fell Amid US-China
The Pound Sterling Swedish Krona exchange rate fell by around -0.4%. This left the pairing trading on forex at around 11.8085Kr.
The Swedish Krona edged higher against the Pound (GBP) after data revealed Swedish producer prices declined in April.
This was the fourth consecutive month of decline. Annual prices declined by -3% after a -3.6% fall in March.
Prices stagnated on a monthly basis, showing no growth after declining -1.2% in the previous month.
Meanwhile, Riksbank’s First Deputy Governor Cecilia Skingsley said the central bank has more work to do. Before it can buy corporate bonds as part of its crisis package to help soften the blow of the pandemic.
Speaking on Wednesday, Skingsley said they have decided to continue their purchases of commercial paper. And they could also buy corporate bonds.
But this isn’t a market that is very well-defined. This is in comparison with the markets for mortgage bonds, local authority bonds, and government bonds.
The Swedish Krona was still able to make gains today in the FX market as traders flocked to safe-haven currencies. This is as US-China relations deteriorated further.
Sterling (GBP) Falls on Trump’s Retaliation to HK Bill
The pairing was left flat today after edging higher at the start of the week. This was after Boris Johnson announced the reopening of non-essential retail stores from June.
Risk appetite also received a boost as hopes for a global recovery from the COVID-19 pandemic increased, boosting riskier assets.
Sterling also edged higher after the European Union has prepared to shift its stance on fisheries in post-Brexit negotiations.
This buoyed GBP as this has been a major sticking point as negotiations were left at a standstill. Moreover, this would be the first major concession from the bloc.
However, risk appetite declined following comments from US President Donald Trump increased tensions between the US and China. This brought Sterling lower against the Swedish Krona.
Trump said Washington would respond to Beijing’s planned security bill for Hong Kong by the end of the week.
Some reports have suggested the US is considering placing sanctions on Chinese officials. This has weighed on global market sentiment.
Pound (GBP) Falls Despite Rising British Grocery Sales
Forex trading reports the GBP remained flat after grocery sales jumped 14.3% in the 12 weeks to 17 May.
Market researcher, Kantar showed this was the fastest increase in sales since records began in 1994.
Kantar said that in the most recent four-week period, sales jumped by 17.2%. This was as Boris Johnson’s government announced the first stage of easing lockdown restrictions.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. Subscribe now and receive FREE updates on the market today!