In recent weeks, the British pound has been one of the most active and popular trends in all major currencies. In any case, this is a constant favorite of retailers trading mainly against the dollar like GBP/USD (“cable”), but also against JPY, such as GBP/JPY (“Geppy” or “beast”) and, of course, against Euros like EUR/GBP.
The British pound is one of the oldest currencies that are currently in circulation. GBP can be an excellent currency for trading profitably since it is in many ways the most predictable of all major currencies. However, traders, in any case, need to be careful, because there is always a danger of losing their funds due to unexpected leaps, volatility, unstable price movements.
Swedish krona is the currency of many countries, including Denmark, Norway, and Sweden. The sixteenth most popular currency in the world, the Swedish krona is divided into 100 eras. The krone is designated “kr” and has the currency code SEK. Sveriges Riksbank, also known as the National Bank of Sweden, Bank of Sweden or Riksbanken, is responsible for issuing banknotes and coins of the Swedish krona.
Sveriges Riksbank manages Sweden’s monetary policy. This policy is aimed at maintaining price stability, and the National Bank of Sweden stated the need to strive for a low and stable inflation rate of 2% per year. Sweden in 1933 pegged the crown to the British pound, and then, in 1939, the country decided to peg its currency to the US dollar due to significant inflation in the UK. During this period, Riksbank maintained its monetary policy focus to ensure price stability and decided to revalue the kroons by 14.3% in 1946, and then depreciate the currency by 30.5% in 1949.
Great Britain is considered the second most important financial country in the whole world, due to the established specific world prices. Often, the UK stock market is one of the good complementary options to the US stock market. Capital in the country is attracted due to the liberal orientation of the legislation and lower costs for the publication of shares.
The EU economy is not distinguished by relative independence, because the countries there are part of a single currency zone or are characterized by high turnover in Europe. The United Kingdom is relatively independent of these criteria. Such independence and weak relations with the euro did their job – a large number of traders began to use the pound to diversify their strategy.
Sweden is one of the leading economies in the world, far ahead of its closest neighbors: Denmark, Norway, and Finland. The country can show such exceptional economic results due to the high professional level of the working population and vast reserves of mineral resources. Sweden is rich in iron ore and non-ferrous metals. Also, it has vast timber reserves and is a significant producer of hydropower.
Mechanical engineering is very developed in Sweden, and the country is considered a major supplier of iron ore, steel and paper, and exports a large number of its products to foreign markets. However, this situation demonstrates the strong dependence of the Swedish economy on exports, the recession of which can seriously affect it. Also, Sweden is heavily dependent on world oil and gas prices – a significant increase in the prices of these energy sources can significantly damage the Swedish economy and affect the value of the Swedish krona.
GBP/SEK is a cross rate against the US dollar, so the dollar has a significant influence on this currency pair. Therefore, combining the GBP/USD and USD/SEK price charts, we can get an approximate GBP/SEK chart. Thus, for the correct analysis of GBP/SEK, it is necessary to monitor such US economic indicators as the discount rate, GDP, unemployment, new vacancies, and others.
However, it should be noted that sterling and the krona may respond differently to changes in the US economy, acting as a specific indicator of exchange rates. Brokers usually set a higher spread for cross rates than significant currency pairs. Before you start trading crosses, familiarize yourself with the conditions offered by the broker.