GBP/SEK: Krona Surges against the Pound amid UK Election Headwinds

Swedish Krona surges against the pound on the currency market amid UK election headwinds. Tuesday, on the interbank market, Krona settled at 12.3296 up 0.85% from the previous closing price.

Tuesday’s trade saw GBP/SEK within the range of 12.4398 -12.3126. However, during the early Asia trading hours, the GBP/SEK exchange rate was seen quoted slightly lower at 12.3180.

Currency traders sold the British Pound against the Krona mostly due to new revelations brought by the latest pools. They showed that the gap between UK Prime Minster Johnson’s party and the Labour Party is narrowing. According to Kantar poll, the Conservatives’ lead over Labour narrows to 11 points. The UK electorate has shifted massively since last week when the gap between the Conservatives and the Labour Party was more substantial at 18 points.

If the Labour party continues to gain momentum it can end up in a situation where no political party will have an overall majority. In the worst case scenario Boris Johnsons’ divorce deal could end up being rejected again by the UK parliament. This will add more uncertainty in the financial system.

Against the greenback, the Pound has dropped from a high of 1.2903. Now it’s trapped in a very narrow trading range between support level 1.2800 and resistance level 1.3000.

Sweden economic growth activity for Q3 are set to be released this Friday, 29th of November. Inflation figures are due before the Riksbank’s December 19 interest rate decision.

Looking ahead over the economic calendar, there are no major risk events that can disrupt the market volatility.

GBP/SEK Technical Pattern

On the technical front, the GBP/SEK price pattern continues to trade in a nervous trading range without a clear direction. However, the long-term trend sentiment remains poised against the Swedish Krona.

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