Sweden’s Krona pared losses against the British Pound and completely erased previous week losses. At the interbank market, the GBP/EK exchange rate settled down -0.96% at 12.2868, but the pair was seen quoted on Monday within a trading range of 12.3952 and 12.2846.
Currency traders will be closely scrutinizing the following set of economic data set to be released from the bot sides of the monetary policy spectrum. In Sweden, the Household Consumption data for the month of November is expected to rise by 0.5% compared to 0.2% prior reading. The data will be published at 8:30 AM UTC.
Elsewhere, the UK economy slowed down to its slowest pace in 8 years. The British economy contracted by -0.3% in November compared to a 0.1% growth rate in October. The Office for National Statistics (ONS) revealed that the unexpected contraction was driven by weakness in the services and production sectors. The post-election economic performance is expected to rebound as hard-Brexit uncertainty has faded away.
In the UK, the economic calendar looks stripped away of market-moving risk events for the day ahead. However, UK traders are eyeing the inflation data as measured through the Consumer Price Index (CPI). According to the market consensus, the annual level of inflation in the UK is expected to come flat at 1.5%. At the same time the inflation reading for December is expected to be unchanged at 0.2%.
The current Bank of England Governor Mark Carney warned that if inflation remains below the BOE’s 2% target, it will prompt a rate cut to boost the economic growth. Mark Carney will step down as the BOE Governor in March when he will be replaced by Andrew Bailey.
On the technical front, and in the short-term, the GBP to SEK pair has developed a tight trading range. For now, the sharp sell-off has stalled near the previous week low where it found some support.
GBP/SEK was down -0.15% to 12.2770 in the late Asian session on Tuesday.
