GBP/SEK have gained great popularity on Forex. Sweden is an active trading partner with the UK. Professional traders choose GBP/SEK for trading attracted by stability and predictability of the euro area and Swede economies. Most of the deals on this pair are conducted during the European session.
GBP/SEK is the cross rate against the U.S. dollar, that is why the greenback has a great influence on this currency pair. Hence, by combining the GBP/USD and USD/SEK price charts, we can get an approximate GBP/SEK chart.
The U.S. dollar weighs on both currencies. Thus, to analyze GBP/SEK correctly, it is necessary to monitor such U.S. economic indicators as the discount rate, GDP, unemployment, new vacancies and the others. However, it should be noted that the pound and krona can respond differently to the changes in the U.S. economy acting as a specific indicator for the currency changes.
Sweden is one of the leading economies in the world, far ahead of its nearest neighbors: Denmark, Norway, and Finland. The country could demonstrate such an exceptional economic performance due to high professional level of its working population and large reserves of mineral resources. Sweden is rich in iron ore and nonferrous metals. In addition, it has large timber reserves and is huge hydroelectricity producer.
Sweden is the largest manufacturer of engineering products, as well as the largest supplier of iron ore, steel, and paper. The country exports a great amount of its goods to foreign markets. However, Swedish economy is heavily reliant on the volume of exports the decline of which can weaken the economy severely. Moreover, Sweden is highly dependent on global prices for oil and gas - a significant increase in prices for these energy sources can hurt the Swedish economy greatly and affect the value of the Swedish krona.
The brokers usually set a higher spread for cross rates than for major currency pairs. Before you start trading the crosses, familiarize yourself with the terms and conditions offered by the broker.