The Pound (GBP) exchange rate weakened against all of the Scandinavian currencies on Thursday after it was weakened by the release of worse than forecast UK Retail Sales data. The Danish Krone (DKK), Norwegian Krone (NOK) and Swedish Krona (SEK) all advanced.
Sterling was also weakened against the US Dollar (USD) and Euro (EUR) after data released by the Office for National Statistics showed that UK retail sales fell by -0.3% last month. The figure was worse than the -0.1% decline forecast by economists and increased concerns over the strength of the UK economic recovery. The drop was in contrast to the rise of 0.4% recorded in August.
On a year on year basis, retail sales increased by 2.7% last month, below forecasts for a rise of 2.8% and were weaker than the 3.7% increase seen in August. Core retail sales, which exclude car sales, fell by 0.3% in September, worse than the 0.2% fall expected.
Danish Krone advances on Consumer Confidence Figures
The Danish currency made gains against a number of peers after the latest consumer confidence report out of the country showed that sentiment amongst Danish shoppers increased strongly in October.
According to the report released by Statistics Denmark, the nation’s consumer confidence index increased to a reading of 8.2 this month, a sharp jump from the 7.1 recorded in September. Most Danish households reportedly said that they are seeing an improvement in their economic situations and their assessment of the economy improved. The view regarding the next year remained unchanged.
Swedish Krona Rises on Jobs Data
The Swedish Krona gained strongly against the Pound and advanced against the Euro on Thursday after data released by Statistics Sweden showed that the nation’s unemployment rate fell from 7.4% to 7.2%. The number of people in work aged 15-74 increased by 101,000 from last year to take the total number of workers to 4.81 million.
Norwegian Krone Advances on Interest Rate Decision
The Norwegian Krone made gains against the Pound after Norway’s central bank left interest rates unchanged at 1.5%. The bank said that inflation and growth in the nation is developing as forecast but warned that the slowdown in the Eurozone could have a negative impact.
‘Uncertainty regarding developments ahead has increased, particularly in the Euro area. The expected rise in key rates abroad has again been deferred,’ the bank said in its statement.
The Pound could receive some support on Friday if the latest Gross Domestic Product growth data comes in positively. However, if the figures disappoint then we can expect to see Sterling weaken further.
DKK, SEK, NOK Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,Swedish Krona,11.6139 ,
Euro,,Swedish Krona,9.1904 ,
US Dollar,,Swedish krona,7.2574 ,
Pound Sterling,,Danish Krone,9.4120 ,
Euro,, Danish Krone,7.4456 ,
US Dollar,, Danish Krone,5.8833 ,
Pound Sterling,,Norwegian Krone,10.5611 ,
Euro,, Norwegian Krone,8.3731 ,
US Dollar,, Norwegian Krone,6.6028 ,
