Swedish Krona snaps 2 consecutive weeks of losses against the British Pound. At the interbank market, during the previous trading week, the GBP/SEK exchange rate settled higher at 12.4980 and was seen quoted within a trading range of 12.2904 and 12.4419.
On Friday, the release of the US NFP report couldn’t spark support for a rebound in risk appetite. The Scandinavian currency had an opportunity to rally following the Riksbank’s minutes, but the flow of money continues to avoid the SEK.
In other news, according to the data released by Statistics Sweden, ISTAT and INE, the industrial production in Sweden grew by 2.1% in November compared to -1.7% prior reading and better than the expected 0.7% growth. The annual growth rate of the factory activity expanded by 0.8% compared to -2.7% prior reading.
Overall, it’s still premature to call for a rebound in the weak industrial production trend.
Looking forward over the economic calendar in Sweden the key inflation rate for the final quarter of 2019 is scheduled to be released on January 15. According to the market consensus, the monthly inflation rate is expected to inch higher by 0.3% versus 0.1% previous reading. Inflation in Sweden rose to 1.8% close to the central bank inflation target. The negative interest rate experiment helped spur inflation, according to Sweden’s central bank Stefan Ingves.
Elsewhere, the UK economic calendar looks heavy with plenty of risk events that can disrupt the market volatility. The highlight risk event is going to be the UK CPI inflation, which according to market expectation should come flat at 1.5%. At the same time following the approval of the Brexit divorce bill by the House of Commons, the bill will move to the House of Lords for further inspection.
On the technical front, the GBP/SEK bullish momentum has stalled near the 12.4050 level. The price action is more likely to remain range-bound as currency traders wait for more clues from the economic calendar.
GBP/SEK was down -0.39% to 12.3572 in late Asian session on Monday.
