GBP/NOK settles above 7-week low, posts weekly loss

The GBP/NOK currency pair settled above recent low of 13.5828, its weakest level since April 4th, 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%.

Elsewhere, Norway’s economy contracted 0.1% quarter-on-quarter in Q1 of 2025, after a revised down 0.9% decline in the preceding quarter.

The Norwegian Krone has received a boost from rising oil prices after a CNN report that Israel is planning a strike on Iranian nuclear sites.

The GBP/NOK currency pair settled 0.05% lower at 13.6877 on Friday.

The exotic Forex pair lost 0.78% for the week.