GBP/SEK: Swedish Krona Falls Sharply against the Pound

Swedish Krona falls sharply against the Pound after several key economic data pointed towards a struggling economy. On the currency market, at the end of the Wednesday trading session, Krona settled at 12.4568 down -0.61% against the Pound.

Wednesday’s trading session saw GBP/SEK within the range of 12.3747 -12.4797. However, during the early Asia trading hours, the GBP/SEK exchange rate was seen further higher at 12.4885.

Sweden’s services PMI missed the forecast figures and dropped to 47.9 in November versus 49.4 as recorded in October. Other key data published yesterday, have revealed that the Sweden economy is exporting more goods than it is importing. It posted a surplus of 68.80 SEK billion in the Q3 of 2019.

The PMI services are a great indicator of the current state of the Sweden economy and followed the downbeat data from the manufacturing sector published earlier this week. From the other side of the monetary policy spectrum, the UK Services sector contracted in November due to Brexit fears.

Currency traders discounted the downbeat economic data and bought the British Pound on uplift Brexit optimism. The latest UK election poll revealed Boris Johnson’s Tory Party gaining more traction ahead of the 12 December election day. The gap between the Conservative Party and Labour Party has widened by 12 points according to Kantar poll.

Eurozone GDP figures will reveal how much the global economic slowdown has impacted the EU economy. According to the general consensus, the GDP figures for the third quarter are expected to come flat at 0.2%, while the annualized rate to stagnate at 1.2%.

Looking over the economic calendar, Sweden will publish its Industrial Production figures for the month of October. This can provide more clarity to the current GBP/SEK price action.

GBP/SEK Technical Pattern

On the technical front, the GBP/SEK price pattern is trying to challenge the 2019 high established at 12.6149 on 16 October. A daily break and close above the key resistance level 12.6149 has the potential to resurrect the long-term bullish GBP/SEK trend.

Currencylive.com is a news site only and not a currency trading platform.

Currencylive.com is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.