Forex Market: GBP/SEK daily trading forecast

Friday’s trade saw GBP/SEK within the range of 11.5626-11.6828. The pair closed at 11.5732, losing 0.85% on a daily basis.

At 8:19 GMT today GBP/SEK was down 0.01% for the day to trade at 11.5741. The pair touched a daily low at 11.5669 at 2:35 GMT.

Fundamentals

BoE Carneys statement

Bank of England Governor Mark Carney and the chief economist, Andy Haldane, signaled they are to stress on downside risks to inflation in the United Kingdom. “We’ve got huge disinflationary forces coming from our trade partners, particularly in Europe, and commodity prices have gone down quite sharply,” Mark Carney said in an interview with The Australian newspaper, as reported by Bloomberg. As consumer prices grew below the central bank’s target, Andy Haldane said in a speech published on Sunday that he is examining developments “like a dove.”

Last week Bank of England downgraded its economic growth and consumer inflation projections for the UK, due to the “moribund” global growth and stagnating Euro region. The annualized CPI decelerated to 1.2% during September, thus, remaining below the 2% inflation objective for nine months.

Sweden

The rate of unemployment in Sweden probably increased to 7.3% during October, according to the median forecast by experts, from 7.2% in September. It represents the percentage of the eligible work force that is unemployed, but is actively seeking employment. The rate of unemployment also reflects overall economic state in the country, as there is a strong correlation between consumer spending levels and labor market conditions. Low rates of unemployment are accompanied by increased spending, which causes a favorable effect on corporate profits and also leads to overall growth acceleration. However, in case the rate of unemployment increased more than expected, this would mount selling pressure on the krone. Statistics Sweden is to announce the official rate at 8:30 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 11.6062. In case EUR/HKD manages to breach the first resistance level at 11.6498, it will probably continue up to test 11.7264. In case the second key resistance is broken, the pair will probably attempt to advance to 11.7700.

If EUR/HKD manages to breach the first key support at 11.5296, it will probably continue to slide and test 11.4860. With this second key support broken, the movement to the downside will probably continue to 11.4094.

The mid-Pivot levels for today are as follows: M1 – 11.4477, M2 – 11.5078, M3 – 11.5679, M4 – 11.6280, M5 – 11.6881, M6 – 11.7482.

In weekly terms, the central pivot point is at 11.6530. The three key resistance levels are as follows: R1 – 11.7435, R2 – 11.9137, R3 – 12.0042. The three key support levels are: S1 – 11.4828, S2 – 11.3923, S3 – 11.2221.