Current market bias is range-bound.
Key drivers include the interest rate differential, as the Bank of England has hinted at slower future cuts, while the Riksbank holds its rate steady. This divergence can influence the GBP against the SEK. Additionally, UK retail sales may show a rebound, supporting the pound's position. On the other hand, Sweden's GDP growth is projected to improve, alongside a decrease in inflation, providing a stable backdrop for the SEK.
The near-term range for the GBP/SEK exchange rate is likely to remain stable, fluctuating within a narrow band. As of recent trading, GBP to SEK is 1.3% below its three-month average, indicating limited volatility.
Upside risks include unexpected stronger economic performance in the UK, which could prompt a rethink of monetary policies. Conversely, a sharper-than-expected slowdown in the UK economy could weigh on the pound, driving it lower against the SEK.