The Pound (GBP) fell today despite renewed hopes of a post-Brexit trade deal, with negotiations due to be extended in Brussels later on this week.
A spokesman for the European Commission said:
‘I can confirm that negotiations are ongoing in London right now, they will run until tomorrow and then they will take place here in Brussels, as of Thursday.’
As a result, GBP has benefited from hopes that the two sides could reach a post-Brexit trade deal before the end of the year.
In UK economic news, however, the latest retail sales figures for October have painted a bleak picture for the British economy in the months ahead.
Ben Jones, CBI Principal Economist commented:
‘The fall in retail sales in October is a warning sign of a further loss of momentum in the economy as coronavirus cases pick up and restrictions are tightened across many parts of the country.’
‘It’s no surprise that sales have dipped despite no new direct restrictions on retail in England, as the evidence from earlier in the year suggests consumers become more cautious as case numbers rise.’
GBP/SEK Forecast: Could Brexit Hopes Boost Sterling?
Swedish Krona (SEK) investors will be awaiting tomorrow’s release of Sweden’s Retail Sales report from Sweden. If this shows any signs of improvement, then this could boost the Swedish Krona.
Tomorrow will also see the release of the latest Swedish Consumer Confidence report for October, which is expected to dip to 79.
The GBP/SEK exchange rate will continue to be driven by Brexit developments this week. If UK-EU talks progress towards a post-Brexit trade deal, then Sterling could rise.
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