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Swedish Krona traded slightly lower on an uninspiring trading day despite broad-based Pound strength. At the end of the Tuesday trading session, Krona settled at 12.3847 up 0.34% against the Pound.
Monday’s trading session saw GBP/SEK within the range of 12.3244 -12.4098. However, during the early Asia trading hours, the GBP/SEK exchange rate was seen almost unchanged at 12.3947.
Krona experienced a healthy rally against major counterparts like the EUR and US dollar. However, it continues to trade near a four year high against the British Pound. In other currencies, GBP/USD has surged above the big psychological number 1.3000. And possibly has set the tone for more Cable gains.
There weren’t any significant macro data scheduled on the docket to motivate the moves in the interbank market. Most probable to main culprit for the FX volatility is the trade tension escalation, which prompted investors to sell the US dollar and the US equities.
The outcome of the UK general election scheduled on 12 December also continues to keep investors on the edge. In this regard, the British Pound crosses will remain sensitive to the UK election news and the trend in the pools. If the UK Prime Minister Boris Johnson’s party fails to secure a majority in the UK parliament it can potentially put in jeopardy his Brexit bill and subsequently the Pound may fall.
In other news, despite the softening economic growth, Sweden’s central bank is expected to abandon the negative interest rate policy (NIRP) during last Riksbank’s policy meeting of the year scheduled on 19 December.
Looking over the economic calendar, Sweden is expected to publish key data, namely the current account figures and the service PMI data. The data published on Monday revealed Sweden’s manufacturing sector contracted for three consecutive months. Manufacturing keeps slowing down across the globe due to trade war headwinds.\
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