The final trading days of the year saw Swedish Krona consolidating its post-UK election gains against the Pound, but inched slightly lower. On the foreign exchange market, the GBP/SEK exchange rate settled at 12.2570 registering a 0.38% gain. On Monday, the GBP/SEK rate was seen quoted within a trading range of 12.1869 — 12.2734.
The natural ebb and flow of funds pouring into the domestic currency is the most likely cause of any price movement on the foreign exchange market. With year-end flow dominating the market and with most banks’ trading desks shut down due to the New Year’s Eve trading activity should slow down.
On the New Year’s Day, all major financial centers around the world are closed and trading on the foreign exchange market is officially closed.
The Scandinavian currency had an awful performance in 2019 depreciating by 8.35% YTD against the Pound. Against the US dollar, the domestic currency SEK tumbled to levels not seen since 2002. Krona’s value was impacted by global factors related to trade war uncertainty and a slowdown in the Scandinavian economy. Swedish Krona remains sensitive to external factors as Sweden economy is heavily reliant on free international trade. Sweden’s economy grew by 1.6% in the year so far compared with 2.3% economic growth in 2018.
During the early Asia trading hours, the GBP/SEK exchange rate was seen stabilizing and trading around 12.2757 levels.
Elsewhere, from the other side of the monetary policy spectrum, the British pound continues to be one of the best performing major currency benefiting from easing fears around the Brexit and the UK general elections. Currency investors have been bidding higher the Pound against all other major currencies.
