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Swedish Krona starts the new week, softer against the Pound giving back to the market all of its profits obtained in the previous week. Monday, on the currency exchange market, Krona settled at 12.4482, up 0.48% from the previous closing price.
Monday’s trade saw GBP/SEK within the range of 12.3099 -12.4484. However, during the early Asia trading hours, the GBP/SEK exchange rate was seen quoted slightly lower at 12.4151. Currency traders sold the Krona mostly due to the broad based Pound strength, which is trading higher against the major G7 currencies. Against the greenback, the Pound has climbed from a low of 1.2834 and is now set to challenge again the big psychological number 1.3000.
Pound strength was motivated by growing bets in favor of the actual Prime Minister Boris Johnson, whose party is set to win the UK general elections scheduled on 12 December. Most recent opinion polls continue to favor the Conservative Party, which is seen winning 41% of the seats in the UK parliament followed by the Labour Party, which jumped to 30% from 28%.
The Liberal Democrat comes in the third position with 15%, followed by the Brexit party with a modest 5% of voter intention. Investors are currently seeing the probability of a Conservative majority as being bullish for the British Pound. If PM Boris Johnson achieves a majority in the House of Commons, then the odds of finding support inside the UK parliament for his Brexit divorce bill increase considerably.
According to some big banks on Wall Street like the Goldman Sachs the British Pound is set to become among the best G7 performing currency in 2020. Goldman Sachs sees GBP rise against the greenback as much as 4% by the end of Q1 2020. If this trade scenario transpires, it will be harder for the Swedish Krona to recover from its losses.
GBP/SEK Technical Pattern
On the technical front, the GBP/SEK price pattern continues to be trapped inside a big trading range with support level standing at 12.3111 and resistance level at 12.6149.
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