The Swedish Krona fails to sustain its gains against a nervous British Pound ahead of key interest rate decision. The GBP/SEK exchange rate has fallen to a low of 12.3787 during yesterday’s trading session, but it has managed to recover and is currently quoted around 12.4520.

The Riksbank is scheduled to announce its monetary policy decision later today. Most economists on Wall Street expect that Sweden’s central bank to keep interest rates unchanged at -0.25%. More, the benchmark interest rate is expected to be kept on old through 2020 and beyond.

However, the main focus will be on the general tone and whether or not Riksbank will maintain their hawkish bias, which in the short-term can help the Swedish Krona to gain more traction. Stefan Ingves, Governor of the Sveriges Riksbank has hinted of a possible rate hike later this year or early next. But, the deterioration in the domestic activity implies that it will become increasingly harder to maintain a hawkish bias.

Macro factors like the US — China trade war, the slowdown in the European Union and Brexit have been adding extra pressure on the hawkish plan. But on the other hand the perpetual weakness that the Swedish Krona had seen since the beginning of the year can encourage Riksbank to maintain its hawkish bias, even if that means keeping rates on hold.

From the other side of the monetary policy spectrum the Brexit theme continues to keep the British Pound on its toes. Keeping track of the new developments relating to the Brexit process it makes harder to assess the trading bias for the British Pound. There are only 7 days more to go until the official departure date October 31.

It appears that even without the UK lawmakers’ support for his Brexit timetable, the UK Prime Minister Boris Johnson said that he will push for the UK to still leave the EU bloc at the end of October.

GBP/SEK Technical Pattern

The GBP/SEK exchange rate has been trapped over the past several days in a nervous trading range. The market still waits for a market driven catalysts to promote some trend development and escape the current consolidation zone. 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 do not represent our views.