GBP/SEK: Busy Economic Calendar Puts Krona in the Spotlight

It’s a big week ahead for the Swedish Krona which remains under pressure following the UK election results. During Friday’s trading session, the GBP/SEK exchange rate settled at 12.3707, but not before breaking to a new 2019 high, a move that was motivated by the broad-based Pound strength.

Friday’s trading session saw the GBP/SEK within the range of 12.2868 -12.4166. However, during the early Asia trading hours, the GBP/SEK exchange rate was seen stabilizing and trading around 12.5654 level.

UK investors rushed on a euphoric buying spree that pushed the Pound to a multi-year high against the greenback. However, some unwinding of their bullish bets was seen before Friday close. The recent rally made the British Pound, the best performing currency among the majors.

In Sweden, currency traders are bracing themselves for the Riksbank’s interest rate decision. Last week, key economic data showed the unemployment rate higher at 7.3%, while Prospera inflation survey showed upbeat figures. The Sweden’s economic data are in line with the central bank’s forecasts giving investors’ confidence that the Riksbank will put an end to its multi-year negative interest rate policy. Sweden’s central bank is expected to hike rates to 0.0% at its 19 December policy meeting.

Key economic data is due out from the other side of the monetary policy spectrum. In the UK, the most important risk events include some figures from the manufacturing sector, the unemployment rate, BOE’s stress test results, the CPI inflation data, the Q3 GDP figures, and last but not least the highlight risk event which is the Bank of England interest rate decision.

With the UK election behind us, investors are now turning their focus on the Brexit deadline. The UK is set to leave the 28-nations bloc on 31 January 2020. Following the historic win in the UK election, the Prime Minister Boris Johnson pledged to deliver the Brexit before the deadline.

The Conservative Party has a comfortable majority in the UK parliament to allow the Johnson’s divorce bill to gain support among the UK lawmakers.

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