Swedish Krona posted two consecutive days of losses amid lackluster growth outlook issued by the leading corporate bank SEB. At the foreign exchange market, the GBP/SEK exchange rate settled up 0.41% at 12.4337, but the pair was seen quoted on Thursday within a trading range of 12.3709 and 12.4376.
In Sweden, the Nordic financial services group SEB forecast an anemic economic growth of 1.1% in 2020 compared to its previous GDP forecast of 1.2%. The same SEB forecast revealed that Sweden’s economy will slow down faster than anticipated in late 2019. SEB experts also see a positive impact in 2021 where growth is expected to accelerate due to “international upswing.”
The Scandinavian currency reacted negatively and continued on its downward movement against the Pound that started since the beginning of the week.
Meanwhile, the SEB believes the world economy to leave behind the slowdown driven by the trade tensions between the world’s two most powerful economies in the world. The Nordic group forecast global GDP growth to strengthen in 2020 to 3.1% versus 3.0% in 2019.
Looking forward, from a macroeconomic perspective, there are no major risk events that can disrupt the market volatility for the GBP to SEK pair. While during the current trading session currency traders are left with an empty economic calendar, on Thursday the GBP/SEK will eye the Unemployment data in Sweden.
In other news, the market mood remains calm with only 9 days left until the official Brexit departure date (31 January). Once the UK will leave 28-nation bloc it will enter a transition period, where the Johnsons’ cabinet will try to strike a trade deal with the EU counterparts until 31 December 2020.
From a technical perspective, the GBP/SEK pair edged up testing the upper side of its current range and subsequently the 2020 highs. The pair is technically in a bullish trend, but in the short-term, it lacks the directional strength.
GBP/SEK was up 0.01% to 12.4350 in the late Asian session on Wednesday.
