GBP/SEK: Investor Sold Krona after Sweden Economic Data

Swedish Krona remains trading lower against the pound on the currency market after Sweden’s economic data was released. Wednesday, on the interbank market, Krona settled at 12.3861 up 0.46% from the previous closing price.

Wednesday’s trading session saw GBP/SEK within the range of 12.3006 -12.4016. However, during the early Asia trading hours, the GBP/SEK exchange rate was seen quoted slightly higher at 12.4014.

During yesterday’s working hours, Sweden released household lending figures and trade balance data. They failed to generate much volatility in the currency market. However, against the euro, Swedish Krona surged to a fresh four month high after it touched the 10.5400 level. Against the greenback, Krona is remaining stable.

According to the Swedish Consumer Agency, Sweden’s total lending to households dropped to 4.8% versus 5.0% prior reading. Year-on-year household leading figures rose by SEK 4,168 billion in October. Sweden’s October trade balance figures came in at -4.0B versus 2.0B prior reading. Sweden’s trade gap narrowed compared with the same month of the previous year.

From the other side of the monetary policy spectrum, the UK election scheduled on 12 December continues to be a risk factor for the stability of the Pound exchange rate. Brexit and election uncertainty will continue to be the main market themes driving the currency exchange rate volatility.

In other news, the YouGov survey conducted on tens of thousands of poll respondents revealed that the Conservative Party could win the general election with a comfortable majority. The YouGov data showed UK Prime Minister Boris Johnson’s party wins 359 seats in the UK parliament. The Labour Party is seen on track to win only 211 seats.

The YouGov MRP methodology is considered powerful by investors because the poll predicted the outcome of the 2017 general election.

On Friday 29 November, Sweden’s GDP for the third quarter will give more clarity over the Scandinavian economic activity.

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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