GBP/SEK: Krona Falls to Lowest Level in 4 Years

Swedish Krona is at a four-year low, performing its worst against the British Pound since 21 December 2015. At the interbank market, during the previous week of trading activity, the GBP/SEK exchange rate settled up 1.61% at 12.7105, but the pair was seen quoted within a trading range of 12.4806 and 12.7275.

GBP/SEK – Swedish krona among the world’s worst-performing major currencies since the start of the year

The year-to-date performance of the Swedish Krona versus the Pound is -2.38% and respectively -3.19% against the US dollar.

The sentiment turned against the SEK and in favor of the Pound following the BoE decision to keep the benchmark interest rate in the UK unchanged at 0.75%. This has prompted investors to bid higher the Pound against all of its major counterparts.

Sweden’s struggling Krona will have to face a stream of economic data that have the potential to disrupt the market volatility.

Looking forward over the economic calendar, in Sweden, the Manufacturing PMI from the Swedbank will be released at 7:30 AM UTC. The data will be followed by the Industrial Production figures and Services PMI scheduled to be released on 5 February at 8:30 AM.

According to the general consensus, the manufacturing activity is to inch higher to 48.0 in January compared to 47.1 in December. The December reading followed after the data compiled by Silf and Swedbank dived to the lowest level in 7 years. At the same time, Sweden’s industrial production on a yearly basis is expected to print 1.1% versus 0.8% previous reading.

Elsewhere, the Pound sterling is celebrating the departure from the 28-nation bloc with a relief rally. Britain left the EU on Friday, January 31 at 11:00 PM.

Looking over the technical patter, the GBP to SEK pair managed to post a weekly close above the 2019 high. The positive GBP/SEK tone is expected to follow through as the market should remain underpinned by the bullish momentum.

GBP/SEK was down -0.24% to 12.6707 in the late Asian session on Monday.

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