The GBP to SEK market is currently leaning bearish.
Key drivers include the Bank of England's recent interest rate cuts and its indication of slower future cuts, while Sweden's Riksbank maintains a stable rate. This interest rate differential is influencing the exchange rate, as the UK faces economic growth slowdowns and potential fiscal concerns. Meanwhile, Sweden's projected GDP growth is expected to outpace the UK's in 2026, providing further support to the krona.
The expected trading range for GBP to SEK suggests stability around current levels, with fluctuations manageable within a narrow band.
An upside risk could arise from unexpected UK economic resilience or higher retail sales figures, which might support the pound. Conversely, a downside risk includes further negative fiscal developments in the UK or a significant escalation in Sweden's economic improvement, which could strengthen the krona against the pound.