Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

The GBP/SEK currency pair edged lower on Wednesday following the latest UK inflation data and ahead of the outcome of the Bank of England’s and Sweden’s Riksbank policy meetings.

The Bank of England is expected to lower its benchmark interest rate by 25 basis points to 3.75% at its December 18th meeting.

In November, the BoE left borrowing costs without change at 4%, while four policy makers voted in favor of a 25 basis point rate cut to 3.75%.

BoE policy makers acknowledged that UK CPI inflation had peaked and underlying disinflation had shown progress.

A subdued economy and rising labor market slack were also factors supporting disinflation, the BoE had said.

Policy makers also noted risks over achieving the 2% inflation target were now more evenly balanced. Persistent inflation has become a lesser concern, while downside risks from weak demand have risen.

The latest UK inflation figures came in below market expectations, supporting the BoE rate cut case. UK’s CPI rose 3.2% year-over-year in November, compared with a forecast of 3.5%.

Core CPI also rose 3.2% year-over-year, versus expectations of 3.4%.

Meanwhile, Riksbank is expected to leave its key policy rate intact at 1.75% at its December 18th meeting.

In November, policy makers signaled that borrowing costs would likely remain at this level for some time.

Inflation continues to be above the central bank’s 2% medium-term target. Yet, it has eased broadly in line with the September projection, solidifying the view that the current price pressures are temporary.

The GBP/SEK currency pair was last down 0.25% on the day to trade at 12.4496.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Natural gas trading outlook: futures ease on mild weatherNatural gas trading outlook: futures ease on mild weather Natural gas fell on Wednesday as most of the US continued to enjoy seasonal and slightly warmer temperatures. Gains were limited, however, ahead of Thursdays expectedly above-average inventory decline and as extended forecasts showed a return […]
  • British pound with a slight change versus US dollar ahead of UK manufacturing dataBritish pound with a slight change versus US dollar ahead of UK manufacturing data On Tuesday the sterling was little changed against the US dollar before the release of Manufacturing Production report from United Kingdom.It is expected British manufacturing to have shrunk during April by 0.2%, after it expanded by 1.1% […]
  • Forex Market: NZD/CAD daily forecastForex Market: NZD/CAD daily forecast During yesterday’s trading session NZD/CAD traded within the range of 0.9444-0.9502 and closed at 0.9498.At 9:28 GMT today NZD/CAD was losing 0.02% for the day to trade at 0.9484. The pair touched a daily low at 0.9475 at 7:10 […]
  • Forex Market: USD/BRL daily trading outlookForex Market: USD/BRL daily trading outlook Yesterday’s trade saw USD/BRL within the range of 2.2593-2.2358, the lowest in a month. The pair closed at 2.2415, shedding 0.25% on a daily basis.At 8:43 GMT today USD/BRL was up 0.01% for the day to trade at 2.2401, having shifted in a […]
  • Gold eases from 1 1/2-week high on profit taking, US jobs data eyedGold eases from 1 1/2-week high on profit taking, US jobs data eyed Spot Gold eased from a 1 1/2-week high near the $4,500 mark on likely profit taking following the recent rally, while the US Dollar held close to an over two-week high, exerting pressure on precious metals' prices.Investor focus now sets […]
  • Forex Market: USD/CAD daily trading outlookForex Market: USD/CAD daily trading outlook Yesterday’s trade saw USD/CAD within the range of 1.2832-1.2921. The pair closed at 1.2845, losing 0.56% compared to Fridays close. It has been the 132nd drop in the past 286 trading days and also a fifth consecutive one. The daily low has […]