The GBP/SEK currency pair was stuck within a narrow daily range on Wednesday, trading not far from last Friday’s high of 12.4033, ahead of UK’s monthly GDP data and Sweden’s CPI inflation figures, due out on Thursday.
UK’s economy probably registered zero growth in November, after a 0.1% contraction in October.
UK’s services sector shrank 0.3% in October from a month ago, while construction output dropped 0.6%. At the same time, UK’s production sector grew 1.1% in October.
The Bank of England is expected to continue moving policy gradually toward easing. Employment risks in the UK remain, while inflation is still above the BoE’s 2% target.
A survey by the Recruitment and Employment Confederation and KPMG showed this week labor demand remained subdued in December, while wage growth picked up. In 2025, hiring remained weak as firms tried to offset higher employer contributions to social security schemes.
Meanwhile, SEK traders are now expecting the final CPI inflation data for December for more clues over Riksbank’s policy path.
Sweden’s central bank left its key policy rate intact at 1.75% at its December meeting, while policy makers again indicated that borrowing costs would likely remain at this level for some time.
The Riksbank also noted that economic prospects had improved, while inflation was approaching the 2% target.
The GBP/SEK currency pair was last up 0.04% on the day to trade at 12.3768.
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