On the first day of the new trading week, Swedish krona was left exposed to subdue trading activity. In the absence of any relevant risk events, the GBP/SEK exchange rate settled down -0.01% at 12.3830, but the pair was seen quoted on Monday within a trading range of 12.3339 and 12.3887.
SEK failed to gain traction against the Pound and finished the first trading day of the week almost unchanged. The GBP to SEK pair continues to struggle to find a clear direction as early gains made by the SEK were completely erased by the end of the day.
The ECB monetary policy decision is the only proxy risk event that will take center stage this week. The first ECB policy meeting of the year will mark the economic outlook for the year ahead. The market implications can be significant if the ECB signals a change in its 2% inflation target. Additionally, after the Riksbank ended its negative interest rate policy, speculation has grown among market experts that the ECB could follow the Sweden Central Bank footsteps.
From the other side of the monetary policy spectrum, in the UK, the unemployment data for the last month of 2019 are scheduled to be released at 9:30 AM UTC. According to the market consensus, the unemployment rate is expected to come steadily at 3.8%, the lowest level in almost 45 years.
In other news, the PM Boris Johnson’s Brexit divorce bill was defeated in the House of Lords. The Lords backed by 270 votes to 229 an amendment to Boris Johnson’s Brexit deal calling for EU citizens who live in the UK to be allowed physical proof of their status.
The GBP/SEK technical pattern has stabilized following its short-term lived dip to 12.3339.
The SEK came under pressure bearing the burden of the new revelation that negative interest rates are back on the table. Currency traders will remain on the edge monitoring the Brexit headlines for fresh cues.
GBP/SEK was up 0.12% to 12.3979 in the late Asian session on Tuesday.