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Sweden’s Krona traded mildly higher against the British Pound, a move that might have been motivated by investors taking profits on the Pound bullish bets. The SEK recovered the early losses suffered on Monday. However, the market sentiment continues to be stacked against the domestic currency.
On the interbank market, Krona settled at 12.4589 down -0.26% on Tuesday. But during the early Asia trading hours, the GBP/SEK exchange rate was seen quoted slightly higher at 12.4722.
With an empty economic calendar, Krona will look elsewhere for potential market drivers that can spur the currency rate volatility. The market will pay close attention to the UK’s inflation report hearings scheduled during the London trading hours.
The UK inflation fell to its lowest point in 3 years at 1.5% according to October’s reading. The falling price in the UK economy was motivated in part by the decline in the energy sector. The disinflationary pressures can force the Bank of England policymakers to cut the benchmark interest rate after the general election due on 12 December.
The latest UK polls show the Conservative Party leading the election polls with 45% of voter’s intention. While Labour Party is seen considerably behind with only 30% of the votes. With less than one month until Election Day, there could still be enough time for public opinion to shift.
Wall Street experts believe that if the UK Prime Minister is able to secure a majority in the UK parliament after the general election, the Pound could rise as much as 12%. Currency traders are shrugging off the concerns over a no-deal Brexit scenario.
GBP/SEK Technical Pattern
On the technical front, the GBP/SEK pattern remains unchanged as the bullish trend continues to dominate the market. For a material change in the trend direction to happen the GBP/SEK currency rate needs to break and close below the key support level established between 12.3111 and 12.3240 levels.
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