Sweden’s Krona held firm at the end of the previous week and it’s heading into the New Year holding its recent gains. During the previous trading week, the GBP/SEK exchange rate settled almost unchanged at 12.2105, but was seen quoted within a trading range of 12.3058 — 12.1596.
The Scandinavian currency recent attempt to strengthen hasn’t been solid enough to recover its year-to-date losses versus the British Pound and it’s on track to finish the year down by almost 8.40%. Currency traders need to embrace another quiet week as we get closer to the New Year’s Eve celebration. With most financial centers being closed on 31 December and the first day of the New Year, the market liquidity should dry off.
During the early Asia trading hours, the GBP/SEK exchange rate was seen stabilizing and trading around 12.2248 levels.
In Sweden, over the period until 10 January the minutes from the Riksbank’s rate hike decision are expected to be published. Sweden’s central bank raised rates by 0.25 basis points from -0.25% to 0.0%, ending the negative interest rate policy.
The Riksbank minutes should reveal more insight into the real reasons behind the rate hike. The current state of Sweden economic development doesn’t justify a rate hike. And, the minutes should reveal what the policy members think about the policy rate path moving forward.
In the UK, the market attention will be on the Brexit transition process and while there is still a risk of a no-deal Brexit, the British Pound continues to hold above the big psychological number 1.3000 against the US dollar. Britain is on track to leave the EU on 31 January 2020.
GBP/SEK Technical Pattern
From a technical perspective, the GBP/SEK price pattern is having a tough time to sustain its current bearish momentum. The GBP/SEK rate has been stabilized as the pair has been defending the support level that aligns with the daily Fibonacci retracement 0.382 level.
