GBP/SEK settles above 2-week low, posts weekly loss

The GBP/SEK currency pair settled above recent low of 12.8138, its weakest level since May 8th, after a stronger-than-anticipated UK retail sales growth and renewed relief among UK households over an upcoming drop in energy prices.

Data by the Office for National Statistics showed on Friday that retail sales volumes had risen 1.2% in April compared to March, beating economists’ forecasts of a 0.3% gain. This marked the fourth consecutive monthly growth, the first of its kind in almost five years.

Food store sales saw a notable rebound, climbing 3.9% after consecutive declines in the preceding two months. Yet, clothing and footwear sales declined over the month despite gains in department stores, household goods outlets and non-store retailers.

Ofgem further relieved pressure on UK consumers by imposing a 7% decrease on the country’s energy price cap. Effective July, this cut follows a series of prior hikes.

Despite the upbeat data, inflation remains a concern. Consumer prices rose 3.5% in April, higher than what market analysts had been anticipating. This tempered expectations of aggressive policy easing by the BoE, though the probability of a rate cut in August still stands at around 50%.

In Sweden, the rate of unemployment was reported at 8.9% in April, up from a three-month low of 8.5% in March. The number of unemployed persons went up by 27,000 from a year ago to 513,000.

The GBP/SEK currency pair settled 0.20% lower at 12.9105 on Friday.

The exotic Forex pair lost 0.62% for the week.