Forex Market: GBP/SEK daily forecast

During yesterday’s trading session GBP/SEK traded within the range of 11.4631-11.5273 and closed at 11.5124.

At 7:07 GMT today GBP/SEK was gaining 0.19% for the day to trade at 11.5319. The pair touched a daily high at 11.5349 at 7:08 GMT.

Fundamental view

United Kingdom

Activity in United Kingdom’s sector of services was probably slightly lower in June, with the corresponding PMI coming in at 58.0, down from 58.6 in May. The index is based on a survey, encompassing managers of companies, that operate in sectors such as transportation, communications, IT, financial intermediation, tourism. They are asked about their estimate regarding current business conditions (new orders, output, employment, demand in the future). Values above the key level of 50.0 signify that activity in the sector has expanded. Higher than projected readings would certainly heighten the appeal of the pound. The Chartered Institute of Purchasing and Supply (CIPS) is to announce the official reading at 8:30 GMT.

Sweden

At 7:30 GMT Sveriges Riksbank is expected to announce its decision on borrowing costs. The median forecast by experts points that the central bank will probably reduce its repo rate by 0.25% to 0.50% at the policy meeting today. The benchmark rate has been held at 0.75% since bank’s meeting on December 18th 2013. The repo rate represents the rate at which banks can borrow or deposit funds at the Riksbank for a period of seven days. Short-term interest rates are of utmost importance for the valuation of national currencies. In case the central bank cuts its repo rate, this would have a bearish effect on the krone.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/SEK manages to breach the first resistance level at 11.5389, it will probably continue up to test 11.5651. In case the second key resistance is broken, the pair will probably attempt to advance to 11.6030.

If GBP/SEK manages to breach the first key support at 11.4747, it will probably continue to slide and test 11.4367. With this second key support broken, the movement to the downside will probably continue to 11.4104.