The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate experienced mixed trade on Monday as the market winds down for the Christmas and New Year holiday period.
Earlier in the session, the Swedish Krona received support from data showing that retail trade sales increased more than forecast in November.
According to Statistics Sweden, retail sales in the Scandinavian nation increased more than expected last month.
In its report sales rose to a seasonally adjusted monthly figure of 0.5%, a drop from the 1.1% recorded in the preceding month.
Economists had been forecasting for Swedish retail sales to rise by 0.2%
On a year on year basis, retail sales increased by 4.5% in November, the same figure recorded in the preceding month.
The figure was better than expected as traders had been forecasting for a figure of 3.2%.
The turnover for retail trade measured in current prices increased by 1.9% from November 2013 to November 2014.
Retail trade for consumables (such as goods sold in department stores and specialised grocery stores) showed an increase of 0.1% while durables (such as clothing stores, furniture stores, second-hand goods stores and mail order houses) increased by 3.3%.
As the session progressed, the Pound edged higher after the Confederation of British Industry (CBI) said that it expects jobs to be created across all regions of the UK and that half of businesses in the nation expected to add to their workforces.
The CBI also said that more permanent jobs will be created than temporary ones.
Also offering supporting to the Pound were comments made by Bank of England policy maker Martin Weale. Mr Weale who is a member of the central bank’s Monetary Policy Committee (MPC) suggested that the improved jobs situation could back his suggestion that interest rates should rise sooner than expected.
‘When I go and visit businesses throughout the country, I find that they are talking of pay increases in a way quite different say from what I was hearing early in the year. Certainly this time last year, I’m getting a more general sense now that people are talking about pay increases which are materially higher than they’d offered in the past whereas a year ago I would come across quite a few firms saying they were going to have a pay-freeze,’ said Weale in an interview with BBC Radio 5.
