Currency Charts: GBP to SEK

GBP/SEK has become very popular in Forex. Sweden is an active trading partner with the UK. Professional traders choose GBP/SEK for trading attracted by the stability, predictability of the Eurozone and the Swedish economy. Most deals on this pair are held during the European session.

Main Pro of currency in the GBP/SEK

The British pound has been one of the most active and popular trends of all major currencies in recent weeks. In any case, it is a constant favorite of retail traders, and it is mainly traded against the dollar as GBP/USD (“cable”) but also against JPY as GBP/JPY (“gappy” or “beast”) and of course against the Euro as EUR/GBP.

The British pound is one of the oldest currencies currently in circulation. The GBP can be a significant currency to trade for profit, as in many ways, it is the most predictable of all major currencies. However, these areas of predictability are often misunderstood, and traders may not be allowed to lose because of unexpected spikes, fluctuating volatility, and generally unstable price action.

The Swedish Krona sometimes referred to as the Swedish crown, is the currency of many countries, including Denmark, Norway, and Sweden. The sixteenth most popular currency in the world, the Swedish Krona is divided by 100 er. It is denoted by the symbol krona and has the currency code SEK. Sveriges Riksbank, also known as Swedish national Bank, Bank of Sweden or Riksbanken, is responsible for issuing Swedish banknotes and coins denominated in Krona.

Swedish monetary policy falls under the jurisdiction of Sveriges Riksbank. This policy is aimed at maintaining price stability, and the SNB adopted such a statement as meaning that it should aim for a low, sustained inflation rate of 2% per year.

Sweden pegged the crown to the British pound in 1933, and then the country decided to peg its currency to the US dollar in 1939 due to significant inflation in the UK. During this time, the Riksbank maintained its goal of using monetary policy to ensure price stability and decided to revalue the Krona by 14.3% in 1946 and then depreciate the currency by 30.5% in 1949.

Factors affecting the GBP/SEK exchange rate

The UK remains the second largest financial country in the world, which sets specific world prices. Often, the British stock market is one of the good alternatives to the US stock market. Due to the significant liberal direction of the legislation and the lower costs of placing shares on the stock exchange, equity capital is attracted here.

There is no relatively independent economy on the territory of the EU because the countries from there are part of the single currency zone or are characterized by a considerable trade turnover within Europe. The UK is relatively independent of these criteria. Pound independence and its deep relationship with the Euro have done their job – a large number of traders began to use the pound to diversify personal strategy.

Sweden is one of the world’s leading economies, far ahead of its closest neighbors: Denmark, Norway, and Finland. The country can demonstrate such exceptional economic performance due to the high professional level of the working population and vast reserves of minerals. Sweden is rich in iron ore and non-ferrous metals. It also has vast timber reserves and is a significant producer of hydroelectric power.

Sweden is the largest producer of engineering products, as well as the largest supplier of iron ore, steel, and paper. The country exports a large number of its goods to foreign markets. However, the Swedish economy is heavily dependent on exports, the decline of which can severely weaken the economy. Moreover, Sweden is heavily dependent on world oil and gas prices – a significant increase in the prices of these energy sources can severely damage the Swedish economy and affect the value of the Swedish Krona.

How to trade GBP/SEK

GBP/SEK is a cross rate against the US dollar, so the dollar has a significant impact on this currency pair. Therefore, by combining GBP/USD and USD/SEK price charts, we can get an approximate GBP/SEK chart. The US dollar weighs on both currencies. Thus, for the correct analysis of GBP/SEK, it is necessary to track such US economic indicators as the discount rate, GDP, unemployment, new jobs, and others. However, it should be noted that the pound and the Krona may react differently to changes in the US economy, acting as a specific indicator of currency changes.

Brokers usually set a higher spread for cross rates than for significant currency pairs. Before you start trading crosses, read the terms and conditions offered by the broker.

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